A Better Way to Measure Inflation

Most people also have to spend money on assets that they hope will provide for them when they retire. A comprehensive measure of the cost of living ought to account for this. None currently does. 

At what was almost certainly his final appearance before Congress as the chairman of the Federal Reserve, Ben Bernanke was asked whether government statisticians are undercounting the "real" rate of inflation. He responded by discussing the difficulties in measuring the cost of living and suggested that the widely-followed Consumer Price Index probably overstates inflation rather than understates it.

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