Inflation Through the Roof in 2007

Anyone who has stepped foot in a car or walked into a supermarket in the last week, let alone the last year, is keenly aware that inflation is out of control. It seems almost immaterial that "core" inflation, which reflects pricing outside of energy and food, remains "tame" by economic measures when the things people can't live without seem to be rising on a daily basis.

Who needs to buy clothing when their closet is stocked? Certainly a new vehicle isn't a necessity when you already have a vehicle which runs. Sure, a new dinette would be great, but the 8 year old set already in the kitchen will make do when every time you turn around, the things you need to survive cost more.

The economic wizards say consumer prices rose 4.1% last year, the biggest spike in 17 years. It would be much more of a service if the wizards factored out everything in the CPI but food and energy and then had the guts to tell us exactly how much prices went up last year.

In January 2007, I paid about $2.30/gallon for gas. Fast forward a year and the cost is $3.10. For most of the last 12 months the average cost was $2.79. On a year over year basis, it looks more like an 18% increase or 4.5 times the CPI claim.

As bad as the oil and gas spike has been, the cost of food staples is even worse. Does it really matter if prices for candy bars and canned vegetables has remained stable when food necessities such as eggs, milk, orange juice, bread, cheese, chicken, etc., have risen 20 to 50% and higher over just 12 months?

Aside from the ever declining dollar, what we're seeing is a consequence of the misguided Iraq war. If we weren't there, gas would be at least .20/gallon lower than it is now and food prices would also decline based on lower delivery costs.

With a President now given to begging Oil Shieks to produce more fuel, the outlook for 2008 looks bleak. Voters should keep this in the forefront when they cast votes now and in November as a radical departure from the current status quo will be required to stave off economic peril in this country.