Cost of Living in 2010 - by who's deffinition??

http://www.bloomberg.com/news/2010-12-15/u-s-consumer-prices-rise-0-1-increase-0-1-excluding-food-energy-costs.html
Well, I heard good news and bad news this week, and I almost couldn't believe my ears: The good news was, some cities and companies are considering pay increases in the 2011-2012 fiscal year budgets for about 1% - 4%; the bad news I heard - "the cost-of-living in the US has not gone up much".

My question was - is it better to suggest a "cost-of-living" increase or just a all over merit increase? To me "cost-of-living" increase sounds more essential and merit sounds more like "optional". Yes, some of us deserve both - however most people who have to deal with the bottom-line won't see it that way. So, I was then told - no, don't suggest a "cost-of-living" increase, because it could be "argued" that the cost-of-living hasn't really gone up? Really??

That's news to me because I have a small child and I am pretty sure that in just 2 years that cost of milk has, I have also had to join a carpool in 2008 because of, that sky high jump in GAS prices! Not to mention health care - it use to cost just $25 for a co-pay, now it's $35...
GAS 2009 $2.66 - 2010 $2.91 (I didn't do 2008 b/c there was that HUGE summer jump)
MILK 2008 $2.74 - 2010 $3.50
STAMPS 2008 $.39 - 2010 $.44
MOVIES 2008 $7.00 - 2010 $10.50

(wiki.answers.com)

Apparently rent has been steady, car prices are lower, and "COMMODITY" costs such as home furnishings, electronics and airlines prices are steady or lower in some cases, due to  "retailers" trying to "stimulate" the buyer...
It also includes "CORE" measures, which excludes "CONSUMER" costs such as, the (volatile) cost of food,  building materials, metals and energy costs.

Which I would argue, even though rent is steady and buying a home costs are down - what about building a new one? If copper and metals are at an all time high, and building materials are more expensive, then buying a new house would cost more, right? Besides that I don't buy new houses every year, or cars, or electronics, or furniture!~

I buy GAS, MILK, STAMPS and MEAT!!