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U.S. Cost of Living Is Higher Than Official Inflation Rate Shows

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Ex-Fed Vice Chair Fischer on Inflation, Fed Policy, Inequality

If the costs of living these days seems to be rising faster than the official 1.3% inflation rate, there’s a reason.

The annual inflation rate for Covid-connected purchases is 1.85%, or a half percentage point higher than the Consumer Price Index, according according to Harvard Business School professor Alberto Cavallo.