There is a little bit of misunderstanding sometimes when people discuss "inflation". To some, if not most people, inflation means increasing prices. To others, it means increase in the money supply, which eventually may cause rising prices after some latency, especially if the growth rate of the economy doesn't keep up with the increase in money supply.

I have no idea whether "rising price inflation" has been underreported, especially by design, by the government. I would concede that there are political and bottom line reasons (e.g, minimize increases in salaries/benefits tied to COLA), but again, if this is happening, IMO it is probably more just institutional slouch than a top-secret directive from the Federal Reserve bunker.

Overall, I don't have an informed opinion what the facts of the matter are wrt to underreported inflation - I only have anecdotal evidence.

OTOH, it is pretty clear that "money supply inflation" has increased dramatically in the past few years due to the various policies associated with the bailout.

Whether this will cause "rising price inflation" remains to be seen - there is always latency between money supply increase and rising prices. In the bailout policies case, the latency is pretty large, as the bulk of the money went to securing "toxic" assets and so forth rather than directly into the consumer economy.

The overhang of this increase in money supply/government debt naturally constitutes rising price pressure, but again, how much is anyone's guess, as there are deflationary pressures as well (falling asset prices, and such).