Federal Reserve Abandons Core Consumer Price Index

Reader Comments
Back to blog

when these kind of changes are made the end result is a massive win for the gov. It gives a false picture of the inflation rate and those of us who have to rely on cola adjustments to keep our head above water are short changed thus the government has a wind fall in the form of funds they no longer have to pay due to the colas being based on a false premise.
once again those in power have succeeded in stealing promised funds from those to whom the promise was made to cover the excessive spending they love to engage in.

ken Eddy of TX 10:17AM December 28, 2012

Retired Feb 2002 age 60.5 with full retirement anunity, but now 16.85% monthly is taken by the cpi. Does anyone know where it explains the railroad retirement act and reailroad retirement bill doesn't mean what it says about full retirement.
As of Dec 31, 2011 $21,000 has been deducted via the cpi since Feb 2002 earning the private trust fund $210,000 at the rate of return as did the rail carriers annual stock report show. Thats is $2.50 per dollar investment. We already had all the contrubutions in the trust fund when we retired and why is the cpi withheld amount being given to the trust fund. I've yet to find on rrb.gov ssa.gov, union websites a step by step explanation how private trust fund anunities got under the cpi, whereas the trust fund keep the cpi withholding amount montly which they've now $210,000 in earnings from my full retirement anunity?
All I've hear is that it is complex, but complex broken down into steps can be done and should be done. Under the railroad retirement act only the joint agreement of the rail carriers, unions, and congress should rrb anunities be under the cpi.
I see no point in giving 16.85% of our contrubutions awards for FULL retirement back to the trust fund. I would like a step by step explanation which should be on the gov websites but it is not.

dave of TX 8:50PM March 01, 2012

Let's just remove everything that significantly affects a consumers budget to get as rosy of a picture as possible. Housing, food and energy costs are the biggest line items in people's budgets. I'd be loaded if I were able to exclude those items from my "bank account index".
Those also are the items with the most price volatility. So it seems very possible to hit a 2% inflation rate outside of those core components. Doesn't mean squat though if the big elephant in the room is ignored.
So, it seems like a failed policy, accounting fraud, and a horrible use of public funds from the get go.

Mike of PA 11:46AM January 27, 2012

As a landlord in Baltimore Md, that rents many properties to the lower middle class, I have only seen rents lowering, not rising as news papers indidicate. I'm also in the position of knowing someone that is four levels down from the very top of the U.S media, aka news 'world'. Directly asked if the news corp's are purposely miss reporting,, especially Fox or the 'liberal' news, I was told,, hesitanly, No, but the facts are not checked very stringitly as once was.

Jon Doe of MD 9:26PM January 26, 2012