Does anyone really believe the identical basket of groceries they paid $100 for last January only cost $110 today?
Remember—in their calculations we trade off: In November we bought Bumblebee Tuna. In December we traded down to Star Kist. In January we traded down to store brand.
In February we traded down to store brand cat food.
The inflation will REALLY show up next month. Ha Ha.
No. But it’s like credit card interest compounded monthly. The other thing to consider is that they are quoting the “producer price index” not the consumer version. PPI is the increase in raw material and semi-finished goods that go into the prices we pay for the finished goods that we buy.
So if every nut, bolt and computer chip that goes into that new Ford F-150 goes up by... say 1.5% per month... what do you think the asking price will be at the dealership by the time it goes out onto the lot?