According to a recent blurb from Consumer Reports, your cost of living might be increasing faster than government inflation statistics seem to indicate. Based on official numbers, the Consumer Price Index (CPI) rose 4.1% from December 2006-December 2007. Not surprisingly, the numbers vary substantially across categories. Indeed, gas was up 29.6%, heating oil was up 28.3%, and public transportation was up 7.2%. Grocery prices were also up 5.6%, with dairy leading the way at 13.4%. The problem here is that gas and groceries are omitted from the so-called “core inflation rate,” which is typically calculated by starting with the CPI and then excluding certain categories — including gas and groceries!
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