"'The government numbers are so below what people are actually experiencing that they no longer have any credibility', says Walter J. Williams, an iconoclastic economist who has no academic appointment but can at least claim an M.B.A. from the Tuck School of Business at Dartmouth. ... Williams thinks the official understatements are deliberate. Reporting accurate figures would cost the goverment more in Social Security benefits, which are pegged to the CPI . and more in interest in inflation-protected bonds. ... 'Absurd', says Labor Statistics spokesman Patrick Jackman ", Forbes, 12 November.
Also reducing reported inflation increases tax revenues as it reduces annual tax bracket adjustments, see my 5 October post . That Williams has no academic post means nothing to me. I have none. I've seen plenty of stupid and venal academics. John Kenneth Galbraith was a Harvard professor. So? Supposedly, Helicopter Ben (HB) got 1590 on the SATs, big deal. HB went to Harvard and was a Princeton professor. So?