Filed under: Capitalism, Economy, Energy, Health Care, Statism | Tags: Just Costs Way More!, Not In The Consumer Price Index, Understanding Inflation
According to the Bureau of Labor Statistics (BLS), the seasonally adjusted price index for meats, poultry, fish and eggs hit an all-time high in May. You may have noticed. The index for these 4 products has risen 7.7 percent over the last year. These items go into the food at home category.
Each month BLS employs data collectors to visit thousands of retail stores all over the United States to collect information on the prices of thousands of items to measure changes for the Consumer Price Index (CPI).
Chicken goes into the CPI, but meats, fish and eggs don’t. Beef is up because of the drought in California. Pork is up because a diarrhea disease has decimated baby pigs. I don’t know what’s up with eggs. I buy brown eggs, but haven’t been able to get any for three weeks. In the Northwest, the stores seem to believe that Northwesterners only eat salmon, which may be true. Our freeways are decorated with salmon artwork.
Here are the goods and services that go into the CPI:
- FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals and snacks);
- HOUSING (rent of primary residence, owners’ equivalent rent, fuel oil, bedroom furniture);
- APPAREL (men’s shirts and sweaters, women’s dresses, jewelry);
- TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance);
- MEDICAL CARE (prescription drugs and medical supplies, physicians’ services, eyeglasses and eye care, hospital services);
- RECREATION (televisions, cable television, pets and pet products, sports equipment, admissions);
- EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
- OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).
So you can see why the inflation rate doesn’t seem to match the outgo in your budget. College tuition must throw everything off all by itself, and have you seen the price of bacon lately?
Inflation measures all the things you don’t buy, and don’t use, and none of the things driving up your cost of living. Bureaucrats!