Thursday, August 21, 2014
Some Stats to Go with Things Seem Expensive
With reported "CPI" inflation being around 2%, let's take a look at some "price increases" June 2013-June 2014 (approximate)
Coffee UP 43%
Natural Gas UP 26%
US Stocks (S&P500) UP 19%
Sugar UP 15%
Beef UP 13%
Home Prices (US) UP 11%
Health Insurance UP 11%
International Stocks UP 10%
Drugs (non Generic) UP 8.5%
US Treasury Debt (10yr) UP 7.5%
Shrimp UP 4%
Avg Salary UP 2.8%
Chicken UP 2%
Gasoline No Change!
Corn (Price to Farmer) DOWN 30%
I'd say if the Federal Reserve is hoping for increased "inflation" by keeping interest rates low--they have accomplished their goal! These kind of price increases lead to lower consumption and declining GDP or reduced corporate profits....or both.
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