Is there good inflation – the washington post gasco abu dhabi location


In the past 12 months, gasoline has been the biggest source of bad inflation. Its price is up 6.8 percent. The price of groceries (“food at home,” in government-speak) is up a more reasonable 1.6 percent, although it is worth watching to see if this summer’s drought and la gasolina mp3 higher prices for food commodities such as corn and wheat drive up those prices in the months ahead.

Neutral inflation: Some other sources of higher prices are not so painful for people. They aren’t desirable, necessarily gas vs electric oven temperature, but neither are they something to panic over. These are products that people tend gas stoichiometry problems to buy relatively rarely and can exert some control over when they make a purchase. If cars, televisions or computers are too expensive, for example, they can use their old ones for a few extra years.

These goods have tended to exert downward pressure on inflation in recent years, although electricity omd not necessarily because of price cuts. Calculating inflation on these goods is particularly challenging, because the goods are always changing. A 2012 Honda Accord is a significantly better car than 3 gases that cause acid rain a 2000 Honda Accord, while a 2012 box of corn flakes is probably identical to its 2000 vintage.

So , for example, when the department says that the price of new cars and trucks rose 1 percent over the past year, as it did in September, or that the price of televisions fell 18 percent, what the department means is that “those were the changes in price when adjusted for the fact that you were also getting a better car or television electricity estimated bills than you were a year ago.”

Innovation is a great thing, but it also means that some of the “disinflation,” or downward pressure on prices , in the economy is coming from sources that don gas tracker’t mean lower prices at the store. When New York Fed President Bill Dudley explained this phenomenon at a community event in Queens last year, he noted, “Today, you can buy an iPad 2 that costs the same as an iPad 1 [but] that is twice as powerful.”

Good inflation: It may be that “the rent is too damn power outage houston report high,” as New types of electricity consumers York politician Jimmy McMillan famously argued. But that may have some benefits, particularly given the place the U.S. economy finds itself in today. One of the biggest components of inflation data is “owners equivalent rent of primary residence,” which is how housing prices are captured in the data.

Rather than measure the price of buying a house, the inflation-measurers try to estimate what it would cost for homeowners to rent their residence. The logic is that o gosh the home purchase is in large part the purchase of an asset, whereas the equivalent rent measures what the homeowner is consuming in terms of shelter. (Essentially, for bp gas locations inflation measurement purposes, homeowners are their own landlords).

A central problem afflicting the U.S. economy is that housing construction has been far below any historical norm for more than five years now. That will not change until builders see rents rising (which is happening) and would-be electricity png homeowners start to see buying a home as a steal relative to renting the same home (which may be starting to happen).