Arnott: CPI is a "massive shell game"

Mr. Arnott said, when the Bureau of Labor Statistics used car prices that were net of the “cars for clunkers” program. That program gave qualifying automobile buyers up to $4,500 in rebates, which the BLS calculated as a price drop.

“That’s pure fraud” in the CPI, Mr. Arnott said, adding that low inflation figures also tend to overstate real GDP growth.