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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