Real Rate of Inflation

I was looking around today to see what the real rate of inflation is--not that I don't trust the Government to tell the absolute truth, you understand, but just to check.

Quick introduction at World Net Daily. Longer one at ShadowStats.

Chart at ShadowStats. What the government says now is that it's about 3.5%. If you calculate it the way they did in 1990, the result is about 7%; if you use the 1980 formula, it's 12%.