Chart of the week: US inflation is worse than it looks

The current annual rate of consumer price inflation (CPI) in America is just below the US Federal Reserve’s target of 2%, but to most people it feels much higher.

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The current annual rate of consumer price inflation (CPI) in America is just below the US Federal Reserve's target of 2%, but to most people it feels much higher, says John Mauldin in Thoughts from the Frontline. Even at 2% a year prices jump by an overall 50% in 20 years, and in any case CPI "doesn't reflect real-life spending".

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