Friday, April 15, 2011

Core Inflation vs. F'n Reality

inflationI just wrote that inflation was tame. That would be ex-food and energy, or the core rate. The core rate was up 1.2%.

Meanwhile, we're getting reamed at the gas pump, right? That's our pocket money. That's the money we feel because it means we have less to go to the fast food places or the movies with. It's not a large part of our budget, but it feels like it.

I'm not sure about food. It seems about the same to me, but others say food prices have gone up a lot. Maybe this is also a smaller percentage of our budgets, but since we go to the store so often this could also feel more personal.

Anyway, I believe the ex-food and energy is the right yardstick to measure inflation by. But it does seem to differ from F'n reality, right?




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