by John Galt
September 16, 2009
As usual the CPI report was heralded for the headline numbers and how the “core” rate is what really mattered. Well, I’ve always been the contrarian so let us take a look at the things you use and need to survive instead of the core price so we can get some idea how the inflation is impacting real people and not the Core-A-Nistas whoever and whatever they are as I wouldn’t want to eat dinner at their homes.
Each graph is from data extracted from the CPI-U Table 1 data and is a comparison of rate of change year over year. While you pour over this, I think I shall search for some desert to consume before the prices go up again.
Thankfully food prices have moderated considerably but keep in mind that with the lower commodity prices, the stress on the domestic family farms has increased and you will see this roll over and start to increase dramatically next year.
The appearance of a stabilizing in some areas with regards to housing prices has allowed the cost of shelter to plateau and this rate of change should remain constant for a while until the monetary expansion hits Main Street in full or the government elects to support landlords via government subsidies.
Even though natural gas has had the largest impact on this, the utilities are seeking massive price increases nationwide to compensate for the sagging commercial sector. As the threat of cap and trade moves into the marketplace in 2011 (because I think it passes) this will become a constantly expanding expense in the future with prices increasing monthly.
There’s what happens when you have an economic contraction of this severity. This is the good news we needed to survive this but the minute we see a war break out in the Middle East watch out for a severe change in prices.
The lesson from above? To save money, flush once per day and don’t drink that much water.
The only thing you need to know is that learning how to sew might save you a buck or two.
Or join a nudist colony.
Thank goodness for Teacher’s unions. And bureaucrats. And college professors. You get so much with this constant year over year price increase: Indoctrinated liberal mind numbed idiots that you have to pay for to learn how to love Marx then spend as much money in therapy to de-program them.
Don’t get sick. Support Obama’s health initiatives. Voila! Zero inflation for Medical Care!
If you believe that one, I have a website to sell you for BILLIONS OF DOLLARS also.
That’s it for this month. Watch what happens in the months ahead because there is a message creeping through the noise and that is if any of the dormant indicators actually start to rocket up in price, the “headline” number and core rates will skyrocket rapidly. Of course via hedonic pricing and implicit seasonal adjustments (Translation: The Evil Monk who is White House Chief of Staff hates the number) inflation will always remain under control.
So excuse me while I leave you tonight and enjoy my 3.72 oz. Pepsi that I paid a 2003 12 oz. price.