Politicians, economists and Wall Street analysts and pundits love to quote the Consumer Price Index or CPI ex-food and energy!
Why do they do that? Because according to them this segment of the Index is extremely volatile so that including it would somehow skew the measurement.
Forget about the fact that for the average American their main expenses are food and energy.
Of course we already know that this logic is spoken by people who are living on the taxpayers dime and are therefore out of touch with reality (aka politicians), other people who are for the most part always wrong and therefore on some level can be forgiven for their stupidity (aka economists) and finally people who just want us to buy stocks and bonds so the markets move higher and they make more money (aka Wall Street analysts and pundits)!
The actual proof is contained in the charts.
True prices at the pump had pulled back recently but is now resuming its climb. Looking at this chart that had prices bottoming at around $1.70 during height of the financial crisis to the current price in the range of $3.64.
Food prices using corn and hogs as our proxy!
Drought is pushing corn and other agricultural commodities to all-time highs while the same drought is affecting meat and poultry.
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