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Inflation Too Low?

Discussion in 'Economy' started by ethics, Jun 23, 2014.

  1. ethics

    ethics Pomp-Dumpster Staff Member

    Here's a typical story about how out of touch the media and the indexes are. The story done by NPR is worrying about "too low inflation" -- deflation -- which imho, is 1000 worse than INflation. But are we in low indexes?

    Between Jan 2003 and Jan 2013 (except where noted) below is the official BLS CPI followed by Official BLS price (percent) increases during that same period.

    CPI: 27.1%
    Eggs: 64.5%
    Fuel Oil: 175.1%
    Gasoline: 118.8%
    White Bread: 36.5%
    Ground Beef: 59.8%
    whole chicken: 49.1%
    milk: 31.3%
    red del. apples: 38.2%
    naval oranges: 39.0%
    orange juice: 35.9%
    coffee: 96.8%
    electricity: 44.9%
    higher education: 91.1% (Dec 2001 and Dec 2011)

    The above numbers are horrid but very conservative.
    So unless you are... alive and use all of the above, how realistic is the CPI?
    tke711 likes this.
  2. Greg

    Greg Full Member

    Food and fuel are not included in the government inflation statistics, or that's what I heard.

    I expect by next year healthcare and healthcare insurance will also be left out.

    We can't have high inflation now, can we?

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