One of the topplay key measures of inflation

As another illustration of just how far removed from reality published inflation numbers are, Figure 1.1 is a chart showing the price increases in a number of commodities in the year 2010. Crucially, check out the column furthest to the right, which is an official government inflation number (consumer price inflation or CPI – one of the key measures of inflation). How can it be 1.1 per cent when everything else has increased by so much more? I concede that this chart is now almost a decade old and many of the topplay commodities have seen price falls since, but I would argue this doesn’t matter.

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