Inflation as Measured by the CPI

Most people do not understand inflation. They notice the price of gasoline increasing; and they think that is inflation. They may also notice that housing and health care prices are rising; then they are really convinced that inflation is on the rise.
They are wrong. And Craig Newmark briefly explains why here, while correcting the errors of some thoughtful commenters. I recommend you check it out.
Robert J. Samuelson’s recent article in the Washington Post got the discussion going. Newmark provides a link to Samuelson’s article.
Speaking of inflation, we can now obtain all kinds of insights from scholars like Craig Newmark for practically nothing (all you need is access to the Internet). Insights at a price of almost zero — and they are not included in measuring inflation!

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