The CPI Number as a Salvador Dali Extravaganza

The surreal artists at the Bureau of Labor Statistics were in a fanciful mood when they put together the November Consumer Price Index. According to these artists, who would put Salvador Dali to shame, the CPI increased by 0.1 percent in November on a seasonally adjusted basis. Over the last 12 months, the all items index increased 1.1 percent before seasonal adjustment, say these artists.

This is all great and wonderful, if you don't drive a car or eat meats, poultry, fish, or eggs.

You see despite all these wonderfully low CPI numbers, the energy index has risen 3.9 percent over the last 12 months with the gasoline index up 7.3 percent. Over the past year, the index for meats, poultry, fish, and eggs has risen 5.8 percent.

Bottom line: After QE2 is done, your real personal inflation index is going to be a lot closer to 10 percent than 0.1percent.