Two Ways The CPI Overstates Inflation

<p>The Consumer Price Index flashed across our screens in big red letters. Like a gunshot in a crowd. The Dow Jones Industrial Average fainted. It was falling nearly 300 points in less than an hour before finally gaining its composure.</p> <p>It's not that this was unexpected. All of Wall Street predicted that the CPI would take a big jump. But the surprise was that Inflation came in above 9%, a level that almost none of the analysts thought likely.</p>