Unfortunately I don't have the statistics on hand, but one time I was looking at the average price of cars compared to the price index that had adjustments appl

Unfortunately I don't have the statistics on hand, but one time I was looking at the average price of cars compared to the price index that had adjustments applied. During a given seven year period, the average price of cars had risen by about 25%. I looked at one specific model (a Corolla) and the price rose by about 15%. But the price index, with adjustments applied, had actually fallen by about 10%. The adjustments applied can make an enormous difference. For example, the CPI is actually thought to overstate inflation. That's not a meaningful statement. Whether CPI overstates or understates inflation depends on the question you are asking, depends on the goods involved, etc. Tiny differences in inflation measures--and inflation has been, by any measure, pretty tiny for quite a while--cannot possibly be big enough to invalidate Silver's numbers. The changes are just too big. Not true, a difference of one percentage point a year compounds, and thus makes a huge difference in long term measurements.