Originally posted by: dullard
Originally posted by: jandrews
Inflation is 3%? I could have sworn last year it was 1.15%
Are you seriously going to argue about that number?
">Data source of CPI data, do your own math.</a> Historical inflation averaged 3.29% from July 1913 to July 2007. Inflation averaged 2.63% from July 1995 to July 2007. So forgive me for just picking a simple number to work with of 3% which is right in line with history.
So, if I use the CPI increase of 2.63% over that time frame, $5 in July 1995 becomes $6.83 now. Again, $6.95 is right about on target. Give it a couple of months and it'll match exactly.
But of course, now you will come back and say the CPI includes things like computers that got cheaper. So, I should use the PPI. And not just the full PPI, but the raw unprocessed food PPI. Well go looking for historical data on that. When you get it, bring it here and I can do the math. I can tell you that finished consumer foods went up in the lower 2% range over that time frame. I just don't know what happened to their raw material prices.
Not to mention that all of this is useless unless we get the exact date when the 5 for $5 started (I'm giving the worst case scenerio of 1995, but I know it started earlier than that). Suppose it started in 1992 instead of 1995, then at 2.63% inflation, the price should be $7.38 now, and $6.95 looks quite good.