So, one way to diminish the crippling effects of inflation is to lie and say there is none. Of course, as you say, in the long run you'll get hammered, as people's expectations fly out of whack and they are required to guestimate future rates of inflation.
According to modern macroeconomics, people are omniscient, and will see past fake statistics. Also, recessions can't be predicted, because everyone is smart enough to prevent them.
"People are omniscient" -- one of several false assumptions that lead to unrealistic results from the theories (and disaster/losses to banks/investors/govt's who base their actions on them)
http://en.wikipedia.org/wiki/Rational_expectations
So, one way to diminish the crippling effects of inflation is to lie and say there is none. Of course, as you say, in the long run you'll get hammered, as people's expectations fly out of whack and they are required to guestimate future rates of inflation.