If everything's price is rising faster than inflation, why is inflation not rising?

First, the government will make you pay a Social Security tax when you get a job, they won't ask you to pay it, they will tell you to pay it. And as sure as the sun is going to come up tomorrow, they will never pay you a dime of it back if you are less than 30 years old, they are broke now, no way, will the youth of today, get back what they will put into Social Security. Governments lie, everyone quotes the CPI data, which is run by guess who? The government? I am not cynical, I look at my bills and what I am paid each year. And there is no way my pay is going up equal to my bills. And I could careless what Bernanke and the fed tells me, it is what my bills tell me. Is buying a house part of the CPI? No in the early Eighties they changed it to "equivalent rent." Here in California only 14% of the population can afford an average priced home. Of course the government is not going to make that part of the CPI. Just like now they quote the "core" CPI rate which excludes food and energy, why exclude two of the most important items? Rather they are volatile or not, you still have to pay them, you don't tell your gas company or the gas station that you don't want to pay this month because oil is too volatile this month? And if you are in college, you will find out how ridiculous the CPI number put out by the government is. 25 years ago, if you had a good job, you could buy a house and raise a family on one income. Now, even with two incomes that is not possible in many cases. So if the CPI has been tame for the last 25 years, why it that you need a college degree AND two incomes to afford a house and raise a family? Before you could do it on one income and many times you did not have to have a college degree.

People will raise prices because they EXPECT it to rise with all this inflation talk. Sellers are human after all... greey humans. Some items will increase faster because changing the price for them is easier. Some items will take time to change their price, because it wouldn't be practical and possibly costly otherwise

It all depends on whether they measure inflation rate from the GDP deflator or they measure inflation rate from the CPI. If inflation is measured from GDP deflator, then we get the inflation rate of ALL goods and services produced domestically. If inflation rate is mesasure from CPI, then we get inflation rate of a fixed basket of goods that a typical consumer would by. So lets say the price of an airplane inflates like crazy. That will have no effect on the inflation rate determined by CPI (because typical consumers aren't the ones buying planes). It will however, affect the inflation rate gotten from GDp if the plane was produced in the country. So when they say that prices are higher than according to inflation rate, well they are using inflation rate from CPI which isnt the most accurate solution.

The CPI is an index of goods. So, any member of that index can increase faster without pulling the entire index along at the same pace (particularly if it is a relatively small component). But, by the same token, any increase in price, without a corresponding decrease in price somewhere else, will generally lead to some amount of inflation. However, the rise in prices of one sector means that people have to stop spending somewhere else, so generally, the price index should not move a great deal unless the overall economy's prices are rising. And, the last time I checked, prices were rising.

The inflation reported by the government is based on the prices of selected goods and services - not the cost of everything. There will be some products that rise in price without effecting the inflation value being reported by the government.

Inflation is simply related to how much currency is currently in circulation. If the government tomorrow printed 200 billion dollars and put it into circulation, the prices would rise because 1 dollar would mean less. So in what you are asking, the cost of goods and services is rising faster than what the amount of money in circulation dictates what they should cost.