OK, its not that I dont believe government statistics but they have been known to tweek criteria. Most notably the durability/reliability multipliers in the CPI and PCE. Objectionable economists (even those within the CBO) believe that the durability/reliability multipliers understates inflation. I really find it hard to believe that we are experiencing 1% to 1.5% inflation when equities are up, soft commodities are way, way up and oil is approaching $100/barrel. The 1970s (oil) supply shocks, alone, were enough to spurn double digit inflation. I understand the concept that deleveraging and lower (retail) prices are supposed to negate the affects of increased money supply (which should generate inflation). I just dont believe that it is happening that way. I really believe that we are experiencing some substantial inflation and being lied to. Has anyone read anything about this?