I think the CPI is great for what it is, but it's easy to mistake it for something it isn't.
Everything in it is based on averages, and there are lots of differences between individuals that affect your realization of price changes.
Examples: I drive 5 minutes to work, my officemate drives 90 minutes -- gas prices mean nothing to me. If you have 4 kids, meat and dairy escalations hit you harder than average. If you're a vegan, seasonal price swings of produce are more meaningful, and factored out of CPI.
CPI also only looks at consumption. We've had 2-3% price growth with low wage growth. Less buying power magnifies price changes.
Everything in it is based on averages, and there are lots of differences between individuals that affect your realization of price changes.
Examples: I drive 5 minutes to work, my officemate drives 90 minutes -- gas prices mean nothing to me. If you have 4 kids, meat and dairy escalations hit you harder than average. If you're a vegan, seasonal price swings of produce are more meaningful, and factored out of CPI.
CPI also only looks at consumption. We've had 2-3% price growth with low wage growth. Less buying power magnifies price changes.