Does anyone actually believe the US Government's measurements of inflation?  Is the inflation you experience as a consumer reflected in the governments report? 

Why is the inflation I am experiencing so much higher that what the government is reporting? 

First, you need to know what the basket of goods the measurement is measuring.  Then how does your basket of consumption deviate from the basket the government is measuring.  For instances, a senior citizen's basket of consumption is more heavily weighted towards prescriptions and medical care than the measured basket.  To the extent (I always think of Randy Sears, former APFC Investment Officer when I use that phrase, hi Randy) prescription drugs and medical inflation is higher than food, computers or housing, seniors will realize a higher inflation rate than CPI. 

www.bls.gov/cpi/cpifact5.htm

apparently, even the Bureau of Labor Statistics understands individual realities differ significantly and has a nice detailed website page to explain why. 

Does my inflation rate matter?  Absolutely! 

If you are planning for a child's college education and use CPI to forecast the cost of tuition 18 years from now, you will substantially miss your mark and not have enough money when the time comes to pay tuition.  Same with retirement, a senior citizens basket of consumption is different from the average consumer and you need to consider this today when planning for your retirement.