Lies, damn lies, and statistics

inflation_1811026bHere’s a fascinating chart of the price of eleven food staples from 1890 to 2011:

http://www.infoplease.com/ipa/A0873707.html

Notice that most prices went up from 1915, two years after the US got a central bank, to 1935, the height of the Great Depression.

Also look at prices from 1970, the last full year that the US was on some semblence of a gold standard, until today.

I found some other websites that show more recent prices:

For example, the price of gasoline went from $1.61 per gallon at the end of 2008 to today’s $3.62, a 125% increase in five years.

A box of Kellogg’s Corn Flakes went from $2.99 at the end of 2008 to $3.79 today, a 27% increase in five years.

A 2 litre bottle of Coke went from $1.09 at the end of 2005 to $1.99 today. an 83% increase in eight years.

A 1.55 oz. Hershey’s candy bar cost 59 cents at the end of 2008 and 99 cents today, a 68% increase in five years.

Oreo Cookies cost $4.29 for an 18 oz box at the end of 2008 and costs $4.59 for a 14.3 oz box today, which means that the price went up from 24 cents per oz to 32 cents per ounce, a 33% increase in five years.

But, remember, the government says there is no inflation…and you trust government statistics, don’t you?

pat barron profilePatrick Barron is an economist of the Austrian School. He has worked for many years as a consultant in the banking industry and has written for many high profile publications such as the Bank Administration Institute, Chicago andmises.org.  Read more from him here: www.patrickbarron.blogspot.com

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