2008-03-14

Supposedly there was no inflation last month...

I have the feeling something is out of whack on the inflation numbers. According to the U.S. Federal Government, the core rate of inflation was flat last month. I don't know how they came up with those numbers.. but they sure didn't look at our house :). Prices on food have gone up in all the stores we go to in NM and from talking to my sister in Tenn and my parents in SC its gone up there too, and we have all had to cut back on things.

My feeling is that this is going to be one of those numbers that's going to be revised a couple of times (probably during days when there are other crisis that will bury it on the back page.) I know its a standard thing during election years to play with the economic numbers at first to make sure that things don't look that bad.

I mean we could say that the US unemployment is only 4.6%.. because we only now measure who is actively looking for employment. If you add in the people who have part-time employment and are wanting full-time.. that number shoots to over 8%. And if you count in the number of people who were looking and have given up because its been 2+ years since they were employed.. the number goes over 12%.. but well that would look like... France or somewhere.

[Addendum:] Duh.. the core inflation does not cover food and energy. Of course with the fact that we are spending a LOT more on those 2 items.. we can't buy anything else.. so those prices would not go up. Well, not until people ask for more raises to cover the fact that they can't buy clothes, washing machines, etc.. because food+energy is so much of the budget.