Indeed, the core CPI has been marching higher. Over the 12 months ended in February, core consumer prices are up 2.4 percent. While not high by historical standards (This does not take into account the fact that the CPI index is not calculated now as it used to. The CPI used to include things like real estate prices), it still marked the sharpest 12-month gain in 2-1/2 years. Inflation has been on the rise even though wage gains have been tepid, meaning workers continue to fall behind. When adjusted for inflation, average weekly earnings are down 0.8 percent over the past 12 months.
``We are seeing price pressures, especially non-energy components, working into the retail level,'' said Richard DeKaser, chief economist, National City Corp. in Cleveland. ``More broadly, we are seeing the inflationary pressure from a weaker dollar and increasingly taut economy.
I personally believe personal CPI levels for consumers are running 8%+ CPI numbers are used by the government to settle entitlement payments of all types INCLUDING Social Security. I doubt the government is interested in producing high numbers there.

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