For some reason I am thinking a lot about inflation. Yesterday's 20 cent increase in gas prices, I am sure, had nothing to do with it. I think it would be interesting to look at some prices for items that I or my extended family use.
Minute Maid juice used to cost $1.89, then it was $2.09, then 2 for $4, now $2.29. So in the last year it has gone up 21%. So did we grin and bear it? No, we quit buying it.
Biscuits and gravy at Casey's went from $2.49 to 2.99. A 20% increase. The family member that eats this did grin and bear it. Red Bull at Casey's was 3 for $5, competitive with Wall mart. Now it is 3 for $6. A 20% increase. In this case now this is purchased at WallMart. I would frequently buy Casey's ice tea for $1. Now it is $1.39. I no longer buy it.
Arby's had a 2 for six special, now it is a 2 for $7. A 16% increase. They did add cheese to one sandwich, so let's say it is an 8% increase.
You can see the difficulty in measuring inflation. The consumer quits buying, they buy a substitute, or they do not change thier buying habits. My guess is that the current method underestimates inflation. Inflation is roughly 8% by the current calculation. The old method used in the 70's, if it was still used, would peg inflation at 18%. This seems too high. You no doubt have heard that inflation is the highest in 40 years. This is false. Inflation now is higher it was in the late seventies, if the same method of measurement was used. Inflation is the highest it has been since the Civil War.
Biden thinks that inflation is up hardly at all.
"put this in perspective" and that the inflation rate month-to-month was "up just an inch, hardly at all."
He is wrong.
Well at least Lucky Strikes are 2 for $6. I wish I smoked.