inflation is a common topic on these threads because it is an economic indicator and also important when storing wealth. however how accurate or even relevant are the methods of calculating inflation? the two main methods are the paasche and laspeyre indexes. but do they take into account the true value of inflation and if they don't then what should the interest targets have been based on. has inflation even been set at the correct target over the last twenty years? i think not. it concerns me how house prices are not represented in the cpi as thoroughly as the rpi and even then their not truly shown. i watched bbc parliament recently and lord saatchi gave an interesting and convincing argument that inflation is not calculated well. if i recall he believed that the heart of the loose monetary policy is down to this incorrect inflation calculation. but what is the alternative, perhaps a real time pricing mechanism that alters the prices for assets instantaneously through an national database but would that prevent small trade from being included? what do you think or suggest? SORRY I HAD TO REPOST IT DIDN'T MAKE SENSE ORIGINALLY. SOMEONE WAS TALKING TO ME WHEN I WROTE IT.