The basis of my research on American manufacturing is that the consumer price index, (the index in which the Federal Reserve uses to calculate real output) drastically understates price increases and therefore overstate real output. This topic is highly debatable and the CPI data from Shadowstats used in my research has been at the center of this debate. Last year, Devonshire Research Group joined Shadowstats with their report that suggests that the real rate of price inflation has been 7-9% over the last decade. This is 6-7 percentage points higher than the CPI released by the Bureau of Labor Statistics and supports Shadowstats data that suggests prices are rising about 7 percentage points more than the government reports.
– Devin Roundtree