I’ve written a lot about inflation in these pages over the years. In particular, I refer readers to an analysis of the elements of inflation that I published in 2012. It’s still valid. Furthermore, those relying on government benefits to pay their monthly bills have seen their overall purchasing power either flat-line or gradually reduce over the past decade, even as food and fuel have increased significantly in cost.
A report at CBS drives home this reality.
Writer Jen Singer, the mother of two teenage boys, wrestles with her grocery list every week to keep the household budget from getting away from her.
“I’d like the government to stop by my house, come food shopping with me and see where the real costs are,” she said.
. . .
It’s not her imagination. While the government says prices are up 6.4 percent since 2011, chicken is up 18.4 percent, ground beef is up 16.8 percent and bacon has skyrocketed up 22.8 percent, making it a holiday when it’s on sale.
. . .
Many are concerned that while economists paint a benign picture, middle-class families are quietly struggling.
“The disconnect is severe, because it’s the economists that make policy but it’s the people who have to live with the outcome of that policy and that disconnect is growing to the point where I think it has to break soon,” Colas said.
There’s more at the link.
In case you missed it in my earlier articles, let me point out again that the official rate of inflation, as calculated by the US government, excludes food and fuel costs. Would you please tell me how that can in any way be an accurate reflection of the prices we’re actually paying?
Sooner or later – probably sooner – the economic chickens are going to come home to roost. When they do, it’s not going to be pretty.