Inflation hasn’t moved much over the past year with consumer prices up about 1% since September 2009. Even with inflation low, the prices of some things you buy each week are way up.
Ben Bernanke has said inflation is uncomfortably low. Some analysts are saying deflation. A deflationary environment is when companies stop spending and consumers stop buying. The dollar has more value and buys more, however, everyone has less to spend because of the state of the economy.
Inflation is the rate, the general level of prices for good and services rise and purchase power is falling. Banks attempt to stop severe inflation and deflation in attempt to keep excessive growth of prices at a minimum.
Due to the state of the economy, prices are rising because the dollar is weak. Investors are turning to hard assets like corn, gold and oil.
Senior social security checks are not receiving a cost of living increase this year. The government has said this is due to the cost of living not rising. The cost of living is based on inflation which hasn’t moved very much.
Due to the current economy, products made with corn will cost you more. Corn is above $5.60 a bushel, as a result of a smaller then expected U.S.A. crop. As well as crops not performing well in other parts of the world.
Grain prices over the Summer were higher then anytime in the last 40 years. Grain is used to feed animals, which means meat prices are going up. Meat is at the highest level since the 1980’s.
Coffee prices are up, too. Most coffee shops have not increased prices yet. The grocery stores have raised their prices slightly with more increases to come.
As we move into winter heating, energy bills are rising too. Energy bills are expected to be up at least $24.00 per household.
Traveling by air is more expensive too. Airline tickets are up 10 – 15%. Ticket prices are expected to remain through the end of the year.
If you’ve drove past the gas station lately, you know gas prices have increased too.