No. 438—PUBLIC COMMENT ON INFLATION MEASUREMENT
Consumer Price Index Has Been Reconfigured Since Early-1980s
So As to Understate Inflation versus Common Experience
CPI no longer measures the cost of maintaining a constant standard of living.
CPI no longer measures full inflation for out-of-pocket expenditure.
With the misused cover of academic theory, politicians forced significant underreporting of official inflation, so as to cut annual cost-of-living adjustments to Social Security, etc.
Use of the CPI to adjust retirement benefits, private income or to set investment goals impairs the ability of retirees, income earners and investors to stay ahead of inflation.
Understated inflation used in estimating inflation-adjusted growth has created the illusion of recovery in reported GDP.
Full Report has all the gory details here at SHADOWSTATS Consumer Price Index.