The state currently enjoys a vastly unbalanced share of the power within a society, such an arrangement is not in any way preordained, and the assumption that it must be betrays a narrowness of vision and a lack of historical knowledge.
The Fed and other central banks are entering into a huge money-printing experiment in hopes of keeping the government-spending machine going at full speed forever. The unintended consequences will be highly destructive.
In theory, it is possible to adjust inflation measures to account for the many constant changes in prices resulting from changing demand, quality, and innovations. But it's essentially impossible to execute these adjustments accurately.