The spin-meisters in charge of computing the CPI claim that prices haven’t gone up, but everyone who buys groceries knows they have. Milk has gone up. Cornmeal and flour have gone up. Eggs went up. Cheese and meat doubled in the last two years. Even beer and wine are more. But the CPI is stagnant, even declining.
If you can accept the truth of what you see with your own eyes at the grocery store, then maybe you are ready to understand how inflation works.
Step 1: Print more money.
Click through for more.
Bread costs more, now, and so does milk and meat. Gasoline is a bit higher; a chain reaction has started, and now everything is higher-priced. What isn’t getting more “dear” probably will be soon.
Why? Well, part of it goes with rising petroleum prices. In particular, gasoline has gone up, and that often has an immediate impact on grocery staples such as grain products. After all, farming is gasoline-intensive—and your supermarket could only absorb so much on its own before it had to pass some of those increased prices on to you. Recession or no recession.