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What is inflation REALLY like? A look at foods


The government tells us that inflation is between 1% and 4.5%. In October 2006 it was 1.31%, in June 2006 it was 4.31%

But when I am in the supermarket, I get a different impression.


I tracked the cost of drinkable strawberry yoghurt as sold in Albertson's and Ralph's grocery stores here in California. I think I will introduce a new inflation measure - PSI - aka the ptiemann-strawberry-index :-)

1998: 1 quart was $1.79

assuming 10 percent annual inflation:

1998 $1.79
1999 $1.97
2000 $2.17
2001 $2.38
2002 $2.62
2003 $2.88
2004 $3.17
2005 $3.49
2006 $3.84

And yes, yesterday (December 2006) I saw my strawberry yoghurt on sale for $3.59 the quart, reduced all the way down from $3.99

Looks like dairy products suffer highly from the increased oil prices.

Generated 4:00:54 on Sep 20, 2020