[Skepolitic]

Inflation is only high if you buy the stuff you need; stuff like gasoline, food, medical services and insurance, municipal utilities, etc.

On the other hand, inflation has been negative on the stuff you’ve already bought; stuff like houses. It’s also been rather low on luxuries like private jet travel, Tiffany jewelry, designer clothing, IPads, etc. If most of your shopping is for luxuries, you’re inclined to believe Bernanke and the Bureau of Labor Statistics.

[beethovenfan]

Bernanke doesn’t have a clue. He’s making it up as he goes along.

[woodenickel]

Nothing to see here, move on

[PeteB570]

Inflation? What inflation? /s

I went to the store the other day to get fixin’s for hamburgers.

An eight pack of buns was $2.69. Tad high I thought.

[beebuster2000]

just filled up at $4/gal.

thats not a small deal

[upchuck]

The not-for-profit research group measures inflation without looking at the big, one-time purchases that can skew the numbers... AIER focuses on Americans’ typical daily purchases, such as food, gasoline, child care, prescription drugs, phone and television service, and other household products.

I find it very curious and slightly suspicious that the once-mighty US Government has nothing comparable. Could it be they don't want us to know how really, really bad it is out there?

[DustyMoment]

the Fed chair said that gas price hikes would temporarily bump inflation upward and reduce disposable income, but that the impact would not be lasting, nor deflect from the long-term trend of stable inflation rates

BS alert!!!!

It is clear that Bernanke drinks his own bathwater and doesn't have a clue about economics!!

[RC one]

I wonder how high it would be if they still calculated it the way they did back in 1978, with a fixed basket of goods and services? Closer to 12% I would speculate.

[Captain Peter Blood]

There is no doubt that the inflation rate is much higher than The Fed or Government is willing to admit.
I suspect a good part of this is The Fed's ZIRP policy. If interest rates were allowed to rise we would see a big difference, hopefully a positive one.
Although allowing interest rates to rise would put the cost of borrowing for the Government higher and lead to the interest expense in the Federal Budget to rise also which in turn will lead to a Default as the interest expense in a short time would just about consume all tax monies there are.
We are in a box and there just is almost no way out between interest expense on the debt and rising medical costs.