Every year the official Consumer Price Index is released demonstrating the average price hikes experienced Americans each year. Last year the CPI rose 3.1 percent, a seemingly modest hike by many standards.
But the American Institute for Economic Research has released an alternate index, narrowing the scope to items purchesed by the average consumer every month, leaving out “big-ticket items” like cars, computers, and furniture.
Recommended Stories
According to this index, the prices for everyday items like food, beverages, fuel, power, and prescription drugs have risen 8.1 percent in 2011.
AIER Research Fellow Polina Vlasenko, explained the index in a statement. “The official CPI is not designed to measure the everyday experience of people. Rather, it is supposed to be a policy guide that reflects broad changes in consumer price levels. The faster increase in prices of frequently purchased items helps explain why some people feel that the official CPI numbers are at odds with their own perceptions of inflation.”
The AIER report is nearly triple the amount reported by the CPI, which might square with what you’ve experienced in the grocery store as you stroll down the cereal aisle.
