There has been some use of the notion of low inflation and CPI to justify the 3% pay raise number. I would suggest that times are changing and that the CPI is a very manipulated formula that helps hide the real effects of quantitative easing. A sampling of the headlines tell a different story...
-Parking ticket fees could rise (Alameda)
-Valley truckers hit hard by rising diesel prices (California)
-Overseas demand, unrest could drive up gasoline prices in United States
-World Bank: Food prices at "dangerous levels"
-Companies Warn That Higher Prices Are Looming
-Cotton may force retail prices to rise
-Clothing Prices Set To Rise This Spring
-Produce prices on the rise in Idaho
-High Sugar Prices Hit Bakeries, Confectioners
-Fed's Lacker: Food, Energy Price Rise Definitely A Concern
-Crop Prices Push Up Farmland Value
-Milk production and milk prices expected to be higher in 2011
-Tomato prices soar after cold weather kill-off
-Corn prices increasing, what'll it mean for grocery costs?
-Global wheat prices could soar as China struggles with drought
I would suggest if you are using "inflation numbers" in your decision making process; It may be prudent to look at real numbers, like what you're paying at the pump or in the grocery stores, to see if the 3% is really keeping up.