hi csl,
"So we should have "faith" in government supplied economic statistics?"
No. We always should ensure the data gathering processes are reliable and consistent and that the figures supplied are a fair reflection of the data set. Some interpretation is inevitable as someone must decide how important the price of bread is relative to cheese and petrol.
Consistency in particular is key because then you can compare from one period to the next even if someone questions the absolute numbers and the interpretation contained therein.
In the end, a figure like consumer price inflation is one that we choose to accept based on continuity of procedure. Where government inflation figures are tested against academic alternatives, they seem to line up fairly well.
This doesn't mean that everyone experiences the same thing. People who live in one environment may be exposed to higher prices than someone else. A person who doesn't use computers also isn't exposed to the sinking cost of processing power. CPI reflects the economy as a whole.
So my acceptance isn't faith-based. It's procedural and scientific.
Whereas the vast figures-based right-wing conspiracy theory is entirely without foundation.
I often used to wonder why Republicans don't believe the figures. I worked it out in the end. Because they don't believe it is possible that reality doesn't match their hypotheses. Unfortunately, csl, it doesn't. Obama did pretty well. You are in denial!
Here's an amusing blog post on the subject. http://krugman.blogs.nytimes.com/2014/07/19/always-inflation-somewhere/
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