Agreed. I think the way they measure inflation (just price of a basket of goods) is very misleading, since many products have gotten much cheaper in real terms, that is to say, requiring fewer resources than they did. Don Boudreaux used to do a series on that, going through the Sears catalogue from the 70's and looking at how many hours an average worker had to work to afford the (lower quality usually) goods then compared to now. It seems to me that with productivity increases like those we see in terms of working to afford X, yet small inflation, the money supply has been expanding very much more rapidly than people realize. The question then becomes what is going on with all that money supply increase? Where is it coming from? Who is benefitting? Who gets it first? Right around then many government aligned economists seem to say "Well, let's just look at the price level."