I've always thought that CPI was a bit on the conservative side of stating the true cost of living. However, it doesn't take into account many of those things which we need to live and operate on a daily basis because the pricing is too 'volitile'.

The AIER has what they call an Everyday Price Index, which follows the trend of those things we buy 'everyday' for living our lives.

AIER's Everyday Price Index | AIER

The EPI Reflects Basic Economic Change | AIER

Inflation: Not as low as you think - CBS News

and just for kicks, a critic of the EPI...

The Everyday Price Index (“EPI”) Is Flawed | TheArmoTrader

I think the last link is just funny when he posts:

"This so called “inflation index” obviously puts significant weighting on ”gas” tremendously over the other components..."

Of course to qualify:

"Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science."

Okay Jerry. Once you graduate and get a job in SoCal where you have to commute over 90 miles/day, then we will see just how heavily you want to weight "gas" as an everyday expense.

I don't know about Mr. Khachoyan, but I, along with millions of other Americans, must commute at least 30+ miles each way to work every day. This means that I tend to top off the fuel tank about five to six times per month. I easily spend almost as much on fuel than on all other categories combined. So when these things are considered the EPI truly is around 8% for me... and probably a bit more than 8%.

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Agreed about inflation being higher than the Bearded Counterfeiter would like us to believe. However, none of the people who I'm friends with and live in SoCal commute 90 miles/day. There are people who do that on BOTH coasts. However, they're generally called "morons who deserve what they pay for."

As an East Coast example, you can get 5 acres in PA for $200,000 rather than 1/10 of an acre or an apartment in Brooklyn for the same price. But if you commute 5 hr/day from said plot in Pennsyltucky, you're not around much to enjoy it.

People that live in Palmdale or Lancaster make that commute to Los Angeles. Small price to pay to escape the hood.

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1979 Black on Black, 300CD (sold), 1990 Black 300SE, Silver 1989 Volvo 780, 1988 300CE (vanished by the hands of a girlfriend), 1992 300CE (Rescue).

You're telling me that LA county doesn't have any areas that aren't the "hood?" You can find a 2 br apartment in the beach cities for ~$1500/mo if you look, and 5 hr per day not spent commuting is a small price to pay for lack of back yard and picket fence.

There's a middle ground between "hood" and "desolate, exurban hell hole in the middle of nowhere." Unless it's a married couple with one having a job in San Diego and the other in Long Beach, the "zOMG I have to commute 100 miles per day" thing is a load of bull crap. You don't need 2000 sq ft to raise a family in -- keep in mind that in 1960, when families were bigger than now, the average American home was ... gasp! ... 900 sq ft.

Not if you want to leave Compton or Inglewood and like to live with your family in a nice four bedroom house. Just drive around five in the afternoon towards Mojave dessert and see all the commuters going back home; just to the outskirts of LA (Sun Valley) is already 45 miles...not my choice but people do it.

Oh, and when you find that $1500 2 bedroom apartment at the beach please sent me a PM.

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1979 Black on Black, 300CD (sold), 1990 Black 300SE, Silver 1989 Volvo 780, 1988 300CE (vanished by the hands of a girlfriend), 1992 300CE (Rescue).

Not right at the beach, but it's doable within 2-3 miles of the coast. Maybe even closer if you're willing to consider Venice.

My girl lives in Venice, no such luck.

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1979 Black on Black, 300CD (sold), 1990 Black 300SE, Silver 1989 Volvo 780, 1988 300CE (vanished by the hands of a girlfriend), 1992 300CE (Rescue).

Let's just say that not all jobs are located in the city. And some of them require that you drive at least 17 miles each way. Presently living 45 miles from the 'office' because we got tired of living in Rosamond.

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2013 Volkswagen Jetta Hybrid SEL Premium (Sparky)
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It's a car not a science experiment! Open the throttle!

I know of one family where the husband and wife each commuted seperately from Rosamond to Long Beach ... daily! I don't think that lasted for long.

__________________
2013 Volkswagen Jetta Hybrid SEL Premium (Sparky)
http://badges.fuelly.com/images/smallsig-us/193500.png

It's a car not a science experiment! Open the throttle!