Wowza, talk about the ivory tower.
Ben Bernanke, quoted in a Reuters story as seem on Yahoo News today:
"Bernanke also told his audience the Fed agrees with studies that say government data overstates inflation data. 'I still think that there's still some overstatement, and Federal Reserve estimates are, depending on the indicator, somewhere between half a percent and a percentage point of overstatement of the inflation rate,' he said in response to questions."
I suspect that the overwhelming majority of people OUTSIDE of Washington DC and university faculties would say that government data UNDERSTATES inflation substantially. I agree with that. I think the government data uses so-called "quality" adjustments to cause large understatements.
I suppose IF I was paranoid or believed in conspiracies I would think that the government does this to rob people of the benefits of their Social Security and to under-index tax bracket intentionally so the government can collect more tax money from its inflation. Hmmmm.