question on real inflation numbers

The Texas Trigger posted on Mon, Aug 6 2012 10:23 AM

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I have been looking at a lot of graphs and reading a lot of information on shadow stats, and I have a question. While I understand that it is impossible to know what the inflation rate is exactly at any given time, I am just wanting to make sure i am reading the graphs on shadow stats correctly, and if so, are we sure they are any more accurate than any other projections and why so?

Here is a graph from their inflation page:

Reading their current estimates using the SGS Alternate CPI 1980's based methodology, inflation appears to be closer to 10%. Using SGS Alternative CPI 1990's methodology, inflation appears to be around 5%. The official number for 2012 looks like about 2-2.5%. These graphs also beg some other questions.

First, what does "SGS" stand for?

Second, what is the "Experimental C-CPI"?

Again, besides the former two questions just posted, am I reading these graphs correctly, and if so, are we sure they are any more accurate than any other projections and why so? Which methodology is better? Is 1980 better than 1990? Is 1990 better than current. I would imagine the answer to these questions is yes, but given that I am not some CPI actuary, I would like more info.

This info pertains to some of my business so I want to get it all straight before I run my mouth.