Ron Paul vindicated on the real rate of inflation

(GoinsReport.com) -- A recent report by CBS vindicates what Rep. Ron Paul (R-Texas) said yesterday during an exchange with Federal Reserve chairman Ben Bernanke during a House Financial Services meeting--namely, that the inflation rate is much higher than what government statistics suggest.

While Paul was likely referring to the Congressional Budget Office's Consumer Price Index (CPI) or Bureau of Labor Statistics Data, the CBS article refers to the American Institute for Economic Research's everyday price index which says that prices are up 8 percent over a year--just one percent short of what Paul said during the hearing yesterday.

During the exchange yesterday, Paul told Bernanke: "Ok, so you’re aware of the prices, but you know this argument that the prices are going up about 2 percent, nobody believes it."

He continued: "You know in the old CPI says prices are going up about 9 percent so they believe this," he continued.

"People on fixed incomes – they’re really hurting, the middle class is really hurting because their inflation rate is very much higher than the government tries to tell them and that’s why they lose trust in government," Paul said.

Read the rest of the CBS article by clicking the link below.

Inflation: Not as low as you think || CBS News