Wednesday, October 2, 2013

USA: What is the True Inflation Rate?


Anonymous said...


In the US food is not even considered in the inflation reports that are given out. I have noticed that when things increase in price, the increase is around 25-30%. They do it in sneaky ways, however. Not everything goes up at once. Maybe one or two items in my basket increase. Then the next time I go, it will be one or two different items. Examples are one box of tissue that was $.88 one week was $1.32 the next week and the cat food that was $11.88 one week for 18.1 pounds was $17.88 for 20 pounds and the pack of lighters that was $3.28 one week was $5.48 the next week. I guess they figure that, if they just change a few things per week, the customer will not notice. And that is not to mention how they are putting less in the packages for the same price.

Anonymous said...

I notice not only the prices creeping up but the sizes creeping down. For example, cheese used to be 16 slices and 16 ounces. It is still 16 slices but only 12 ounces. That is a 25% inflation rate on that item if prices do not increase.

Greek Caste System said...

I 've said many times that in Greece (and I suppose to other PIGs) there is not inflation but DEflation.
There is no need of statistics, I am an engineer, entrepreneur and I have cut the price of my services 30-40% and still lowering them.
Rents have fallen 20-30%.
Supermakets more and more offer cheaper but private label products.
This happens because Germans want a strong Euro, so governments in order to meet their enormous sovereign debt impose cut-throat taxes, instead of cutting money like the US.
They are still timid to get rid of useless bureauctats and their provocative salaries.
Situation is still not too bad because people live from their bank deposits and by selling jewellery.

Anonymous said...

I thought groceries were going up in the US till I started keeping an old receipt every six months or so. I compared staple items like milk and eggs, same brands I've been buying for years. My groceries have surprisingly gone up and down several times in the last few years.

It feels like things are always getting more expensive, but I haven't found that to be the case when I kept track. Except for gas. That always goes up.