The Labor Department reported on Friday that the US Consumer Price Index (CPI) rose 0.6% in May -- the most since November and reversing a three month downward trend -- as the high price of oil sent the price of goods higher.

While I expected the number to come in on the high side, it grossly underestimates the real inflation rate. What’s more, the “core” inflation rate, which strips out energy and food prices, was reported to have edged up only a modest 0.2%. Give me a break! That’s not a bad number if you don’t eat and drive!

As I’ve told you before, the government’s CPI number is rigged, using all kinds of manipulations and shenanigans to keep the number absurdly low. Anyone with half a brain can see that the “official” data doesn’t jibe with what consumers are experiencing as prices for everything under the sun climb higher.

And with the declining dollar and the Fed’s easy money policy, which I don’t expect to change anytime soon, much more inflation is ahead.

My estimate: The real inflation rate is running around 8%-10% and will jump even higher to about 15%, even 20% or more!