Here are some stats for the June 2008 inflation numbers:
Consumer Price Index:
- up 1.1% in June ’08
- up 0.6% in May ’08
- predictions were for a 0.7% increase
Over the last year the Price Index is up 5.0%
- this level isn’t seen since 1993
Core CPI (doesn’t include energy and food price increases):
- rose 0.3%
- predictions were for a rise of 0.2%
- the 12 month rise is 2.4%
Specific areas of inflation:
- Energy – 6.6% (including the 10.1% for gasoline)
- Fruits and Vegetables – 2.8%
- Dairy – 1.6%
- Grocery overall – 6.1% for the month and 10.4% year over year
Hourly wage is up 3.4% year over year. So Americans are seeing their buying power diminish.
Notes:
The cost of gasoline has an immersion effect on the price of everything else because very little is solely produced locally.
Hourly wage is up 3.4% year over year. So Americans are seeing their buying power diminish.
The rebound from the recession in the early 2000s was considered a wageless recovery because much of the benefits of the rebound was poored into dividends or executive pay. This potentially fueled the housing bubble.
Working Thoughts 