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TYhe Burrito Index: More accurate than the CPI
Friday, September 2, 2016 11:49
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For years, Federal bureaucrats have manipulated the Consumer Price Index in order to hide the true rate of inflation. Fortunately, for those looking for a measure of inflation that cannot be manipulated , Charles Hugh Smith of the Of Two Minds blog, has developed: the BPI (Burrito Price Index):
Since we keep detailed records of expenses (a necessity if you’re a self-employed free-lance writer), I can track the real-world inflation of the Burrito Index with great accuracy: the cost of a regular burrito from our local taco truck has gone up from $2.50 in 2001 to $5 in 2010 to $6.50 in 2016. That’s a $160% increase since 2001; 15 years in which the official inflation rate reports that what $1 bought in 2001 can supposedly be bought with $1.35 today. If the Burrito Index had tracked official inflation, the burrito at our truck should cost $3.38—up only 35% from 2001. Compare that to today’s actual cost of $6.50—almost double what it “should cost” according to official inflation calculations. Since 2001, the real-world burrito index is 4.5 times greater than the official rate of inflation—not a trivial difference. Between 2010 and now, the Burrito Index has logged a 30% increase, more than triple the officially registered 10% drop in purchasing power over the same time.
Read the rest here. Campaign for Liberty is working to reveal the truth about America’as monetary policy by Auditing the Fed. Please join our efforts.
Source: http://www.campaignforliberty.org/tyhe-burrito-index-accurate-cpi
