>But the government does not regard it as inflation in the CPI till it reaches the final consumer. I think this really drills down into the crux of the problem

>But the government does not regard it as inflation in the CPI till it reaches the final consumer. I think this really drills down into the crux of the problem that was posed. If you merely want to survive and not build up investments and capital for your later life and heirs, then consumer inflation gives you a good picture of how prices are raising around you and what your purchasing power looks like. If you actually care about having some security for the future, land or assets for your business, preserving wealth for general use in any asset class, or something to pass on for your family, or being a PART of the world rather than just a consumer, then the CPI looks like a poor indicator of your changes in purchasing power.