Originally Posted by Koyote

One of the problems with measuring inflation is that some items are static over time -- a gallon of milk, or a bushel of apples. But other goods change over time, often (perhaps usually) for the better. So, while your newer newer car and newer bike do cost more dollars in nominal terms, they are also vastly better -- more features, better performance, better reliability, etc. It's almost like comparing two different products.