by Region-Formal
They changed this method in 1980, to deliberately downplay inflation risks and manipulate public opinion. The last time it was at current levels was in 2008, just before the crash…
Source: www.shadowstats.com/alternate_data/inflation-charts
ShadowStat’s chart is derived by applying the original calculation methodology the BLS was using, before they modified it to dampen inflation figures. It is in the Government’s best interests to hoodwink the public on this, as high inflation means high costs for Social Security benefits, food stamps, military and federal Civil Service retirees and survivors,children on school lunch programs etc.
The other major incentive is that markedly higher inflation has often precipitated recessions and stock market crashes. If you look at the chart above, you will see that the three major crashes of the last 40 years (Black Monday in 1987, Dot Com Bubble Bursting in 2000, and the Lehman Shock in 2008) all had periods of sharply rising inflation just prior to them. The fourth one appears to be happening right now…