The inflation rate is calculated by tracking price of a specific set of goods. The fed tracks this number and aims to set it at about 2%. So what happens is the

The inflation rate is calculated by tracking price of a specific set of goods. The fed tracks this number and aims to set it at about 2%. So what happens is the inflation creeps up in everything that is not measured in this basket. For example, the price of homes, college education, and equities have gone up much faster than the 2% target. It is another one of those cases of Goodharts law. The way they are measuring inflation is no longer capturing the drop in the value of money.