Is there a reliable source for the REAL rate of inflation?

Question

IE: Inflation before government manipulation...

The official CPI for the UK [in May 2008] put inflation at just 3.3%, but my household budget has increased by approximately 12% since May 2007. This excludes my alcohol & tobacco consumption which would probably push it even higher.

Answer 1

Try checking out http://www.shadowstats.com/ by John Williams. Additionally, the BLS (Bureau of Labor Statistics) will regularly distort unemployment rates, government deficits, and GDP statistics due to political pressure. Inflation has been understated in recent years after instituting the "adjustments" recommended by the Boskin Commission some years back.  The government's motivation is to reduce the amount of cost-of-living adjustments to Social Security recipients thereby reducing its liabilities.