When you think you understand how the CPI (Consumer Price Index) works and how to use it, you assume everyone else does as well. Our recent experience at Ruminations has taught us the folly of our living in our own world. Recently, we’ve seen several cases proving us wrong; two of them leading to litigation, and one to a client (almost) miscalculating an important investment decision, a smart client at that.

So, with apologies to those of you who already know this stuff, here we go.

The CPI is determined and published by the U.S. Bureau of Labor Statistics (BLS, for short). You can find the current CPIs and historical numbers on its website at: data.bls.gov. [Read more…]