ritholtz

The Realities of 2% Inflation

I do not understand your math:

Housing up over 50% over the past 7 years (higher in some areas);

Medical care up 11% per annum for the past umpteen years.

College costs up over 7%+ per year. Insurance costs rising rapidly.

Dairy is up nearly 100% over the past 18 months,

Beef prices up almost as much.

The CRB index has reached an all time high, with Soybeans, Corn, Wheat all breaking records.

In 2001, Oil was in the teens, and now its over $80.

Timber, aluminum, steel, copper all have gone way way up, breaking record highs.

Yes, iPods and plasma tvs are cheaper, thanks to manufacturing economies of scale as these became mass market products.

But these fun items hardly cancel out all of the goods and services that have risen so significantly in price. Especially when you consider these are items people need -- not discretionary wants . . .