Typically, there are two types of people in the inflation camp.

You have the people who follow the Consumer Price Index (CPI), which has come to represent inflation itself. But this metric has been so heavily manipulated over the years… it's biased at best.

Then you have everyone else who has seen the cost of goods mostly rise, for whom deflation just seems a bad joke.

Personally, I don't think I'm your typical “Joe Six-pack,” but the drop in commodity prices sure hasn't helped my standard of living. And it's not like I have a lot of extra cash lying around just because gas prices have fallen about 50% in the last couple years (I must not drive that much).

Wherever you stand on the matter, the fact remains that the Consumer Price Index is the most widely followed inflation tracker, and one that matters a great deal to the Fed.

So with the index which came on Tuesday flat at 0.0%, as expected… up 0.2% for the core prices (which excludes food and energy), as expected… and up 2% year-over-year, hitting the Fed's target for inflation… it was obvious that the Fed will raise rates. And it did.

Sure enough, the Bureau of Labor Statistics compiles the prices on a basket of goods to calculate price inflation, and a quick glance tells me that a few of my favorite things have gone up in price over the last few years.

Boneless chicken breast – up 13%.

Coffee – up 12%.

Bacon – up 18%.

Steak – up 32%.

And wine – up 66%!

On top of food prices, college tuition is going up – though I'm fortunate my youngest will graduate in 18 months! – and living in Tampa, FL I've seen housing prices move up. And don't get me started on health care costs!

All this considered, you can't help but wonder how inflation on the CPI is only up by 2%!

But like I said: the calculation has been manipulated over the years in a couple major ways.