October C.P.I. for Necessities – Operation Occupy Inflation in your Wallet


By John Galt
November 16, 2011 – 08:45 ET

The big buzz today will be “see, we’ve tamed inflation” but the reality is that it was a month over month drop in the overall rate of inflation, not a decrease in prices for the things the average person needs to survive. Since the average American has fallen prey to this propaganda and believes that a 0.1% drop in the headline number suddenly means their 16 oz. cereal box will return any day now at the same price (wish in one hand, etc…), the number is praised as part of the efficiency of our central banksters system.


Reality?


Every category in my necessities list increase year over year, including the clunkers aka price of used cars which appreciated over 5% again year over year this month. The annualized “official” rate of inflation has maintained a 3.5% rate for all items and 4.3% rate for all items minus the shelter category. This chart of the CPI-U for necessities with data from the BLS tells the tale of woe:


Used car prices are not fairing much better and the constant 5% increase in prices is crippling the lower middle class and the poor’s ability to obtain affordable independent modes of transportation:


Just remember, inflation isn’t painful until you’re starving or the credit gets cut off……

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