In the book Bailout Nation, there’s a whole section that explains how the Boskin Commission basically invalidated the CPI as a true measure of inflation. Ever since I read it, CPI has become one of the chief Bête Noirs of this site – especially lately as the Commodity Olympics have gotten underway.
A Part Of NY has a post up that checks in on that Billion Prices Project – it’s basically a measure of inflation calculated by scouring online prices for 5 million products in 70 countries on a daily basis. There are guys from MIT behind it, I’m pretty sure I had mentioned it once or twice here.
Anyway, here’s how the BPP sees inflation now versus the official Consumer Price Index: