Inflation
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Joined: Aug 2002
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From: Randolph, NJ
Inflation
I was just looking at the national statistics on the CPI. The numbers seem relatively stable and inflation seems low (based on the numbers).
At the same time it seems to me that things have gotten to be much more expensive in the last 6 months to a year. For example, a gallon of gasoline, though stable now, increased dramatically within the last year. I just got my gas bill for the gas I use to heat and cook. I used about the same amount as I did last year, but the bill is 20% higher. My family is spending more on food and other necessities then we ever did, and certainly the price of "comfort" items like cable tv keeps going up.
There seems to be a disconnect. How is it possible that the CPI is stable but all of the things that we buy are more expensive? Is the statistic wrong? Am I buying all of the wrong things? Is there an agenda? What is going on here? What do you think?
At the same time it seems to me that things have gotten to be much more expensive in the last 6 months to a year. For example, a gallon of gasoline, though stable now, increased dramatically within the last year. I just got my gas bill for the gas I use to heat and cook. I used about the same amount as I did last year, but the bill is 20% higher. My family is spending more on food and other necessities then we ever did, and certainly the price of "comfort" items like cable tv keeps going up.
There seems to be a disconnect. How is it possible that the CPI is stable but all of the things that we buy are more expensive? Is the statistic wrong? Am I buying all of the wrong things? Is there an agenda? What is going on here? What do you think?
Thread Starter
Joined: Aug 2002
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From: Randolph, NJ
Originally posted by fltsfshr
Did you notice golds up 20 percent in the last year.... smells like inflation to me.
fltsfshr
Did you notice golds up 20 percent in the last year.... smells like inflation to me.
fltsfshr
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From: The (S)Low Country
Originally posted by ralper
My family is spending more on food and other necessities then we ever did, and certainly the price of "comfort" items like cable tv keeps going up.
My family is spending more on food and other necessities then we ever did, and certainly the price of "comfort" items like cable tv keeps going up.
My gas bill (heat & water) was almost twice as much for Dec/Jan over last year's -- and we did nothing to increase our usage. Food is skyrocketing and our grocery/food costs are up by at least 50%. 
Joined: Nov 2002
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From: Arlington, VA
Well, from my recollection (and I don't work on the CPI now), the Index is revised every 10 years with tweaks in between. An excellent information source, if you want to know how it works, is the BLS website - www.bls.gov. Go to CPI Frequently Asked Questions. Enjoy! 
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You can always apply the sears suit rule
take sears best suit and athe price of gold. Hmm the suit through the years is about the same as the price of gold. So if you getting the same value (the suit) for more dollars that's inflation.
I've always like this analogy.
fltsfshr
take sears best suit and athe price of gold. Hmm the suit through the years is about the same as the price of gold. So if you getting the same value (the suit) for more dollars that's inflation.
I've always like this analogy.
fltsfshr
