The Bureau of Labor Statistics reported that in May 2022, Annual Inflation Rose. May Food Inflation Breaks Record: The combined food index (at home and away) increased 10.1 percent for the 12-months ending May, the first annual increase of 10 percent or more since the period ending March 1981. Food at home rose even more... 11.9% over the last 12 months... while food away from home "only" rose 7.4% over the last year. All six major grocery store food group indexes rose in May. The index for dairy and related products rose 2.9 percent, its largest monthly increase since July 2007. The index for nonalcoholic beverages increased 1.7 percent, and the index for other food at home rose … [Read more...]
Inflation Adjusted Gasoline Hits New High
June 10, 2022 Update: AAA says the national average is now almost $5.00 a gallon (and much higher in places like California). That moves the blue dot on the chart below up and prices are now well above inflation-adjusted peaks! June 2, 2022 It's no secret that gasoline prices are skyrocketing. However, a couple of months ago we said that although gas prices were high and rising, they still weren't at record levels when looked at in inflation-adjusted terms. But all that has changed now as gasoline prices continue to climb upward. Today the AAA reported the highest national gas prices they have recorded. Although this is a significant development, all sorts of … [Read more...]
February 2022 Inflation- 7.9%… Is 11% Next?
The Bureau of Labor Statistics reports February 2022 Inflation Hits Another Record High. Inflation Summary: Annual Inflation highest since January 1982. CPI Index rose from 281.148 to 283.716. Monthly Inflation for February was 0.91% The next release is on April 12th February 2022 Annual Inflation was 7.87%. Jan. 2021 -- 1.40% ** Jan. 2022 -- 7.48% ** Feb. 2022 -- 7.87% Inflation soared again in February 2022. The last time inflation was higher was in January 1982 when it was 8.39% but then it was declining from the March 1980 peak of 14.76%. Although we calculate it to two decimal places the Bureau of Labor Statistics reported February's inflation rate as 7.9%. BLS … [Read more...]
Inflation Picks Up in December
The U.S. Bureau of Labor Statistics (BLS) published their current inflation (CPI-U) report for the month of December on January 20th. The Consumer Price Index was 236.525 down from 237.336 in November. With the index going down you would think that we would have deflation but because when we say inflation or deflation we are talking about annual inflation/deflation we need to compare the index to the index from a year previous. Since the CPI-U for December 2014 was 234.812 and the current index is higher, we had annual inflation of 0.73%. According to the BLS, over the last 12 months Energy Prices have fallen -12.6%. Specifically, Gasoline is down -19.7%, Fuel Oil is down -31.4% and … [Read more...]
Are Oil Companies Ripping us off with Gas Prices?
With the steady decline in gasoline prices during 2015 people aren't too concerned with the price of gas anymore. But on occasion crude oil prices have fallen without the corresponding decline in gasoline prices. When this occurs someone always asks me if the prices are actually correlated or are the oil companies just ripping us off. This prompted me to create a chart comparing the price of crude oil to that of gasoline so you can see for yourself how well they correlate and I recently updated that chart. See the full article here: Gasoline vs. Crude Oil Prices. You might also enjoy: Are Low Crude Oil Prices a “Boom Or A Curse” For The World Economy? Includes: Top 10 Crude … [Read more...]
Updated Inflation Adjusted Gasoline Price Chart
With the recent drop in gasoline prices perhaps you have begun to wonder exactly how close to historical lows are we? If so we have updated our famous Inflation Adjusted Gasoline Price Chart. It shows where we stand on an inflation adjusted basis. Lowest Inflation Adjusted Price of Gasoline was $1.46 in 1998 Back in 1918 gasoline was $0.25 a gallon and by 1932 prices had fallen to 18 cents a gallon! But as we all know over the last 100 years the purchasing power of the dollar has fallen drastically so in order to get the true picture we can’t just say that the lowest price of gas was 18 cents per gallon, we need to adjust the price for inflation. When adjusting for inflation there are … [Read more...]
Gasoline Taxes by State
Yesterday we looked at the BLS' release of the July Inflation numbers and that lead to a discussion of gasoline prices and the correlation between high gas prices and politics. The first thing we looked at was the graphic of gasoline prices by state. And then we looked at the political landscape based on the percentage of the state that voted Democrat or Republican. We looked at the following graphic and noted that "the more blue the more Democrat and the more red the more Republican (which by the way is backwards compared to the rest of the world) and incidentally almost exactly backwards for the gasoline chart as well. There appears to be a very high correlation between high gas … [Read more...]
Inflation Flat in June 2014
The Bureau of Labor Statistics released their Consumer Price Index (CPI) for June of 2014 on July 22nd. Based on the rounded numbers this would result in an Annual Inflation Rate of 2.1% the same as last month (May). But here at Inflation Data we look at it to two decimal places and based on that we can see that in May the rate was actually 2.13% and in June it fell ever-so-slightly to 2.07%. Many will say that it isn't statistically significant and it quite possibly isn't but it is quite possible that inflation is heading down again. Time will tell. I find it interesting that both the WSJ and Reuters top articles on inflation today say inflation is "Up" WSJ:Spike in Gas Costs Pushes Up … [Read more...]
Understanding Inflation and What to Do About It
Inflation erodes our purchasing power causing manufacturers to have to raise prices or reduce quantities in order to make the same profit margin. Neither consumers nor manufacturers benefit, so who does? Why is inflation so prevalent? Yes, the level of inflation will vary and may recede briefly but the erosion continues. To say that low inflation is better than high inflation is like saying a death of a 1000 cuts is preferable to beheading. Either way you are dead, one just takes longer. With low inflation however you may not notice the cuts since they are so small. Unfortunately, just because the government says the cuts are small doesn't mean that they actually are. See Can We Trust … [Read more...]
Gasoline 20 Cents a Gallon?
Many of us aren't old enough to remember Gasoline at 20 cents a gallon. I can remember gas during the 1960's at 29.9 cents a gallon. The last time that gasoline averaged 20 cents a gallon was in 1942. That was during WWII ! But if you know us here at InflationData.com you probably know that we usually talk in inflation adjusted prices. So adjusting for inflation, the price of gas in 1942 would have been $2.78 if you are paying in January 2012 dollars. But that is still a long way away from the average price of Gas in 2011 of $3.48. We track the inflation adjusted price of gasoline based on the annual average price using the Consumer Price Index (CPI) generated by the U.S. Bureau of Labor … [Read more...]