First, food, fuels used at home and gasoline are 20% of the "average" consumer's household budget. However, the government does not believe that those items are relevant. Why? Because its focus is on "core inflation," which eliminates food and energy. From that perspective, price inflation is not a problem. I don't know about you, but I do use gasoline and eat food. Now, let's look at what is happening to energy and food prices. Three-month average change on Food is .87%, which is an 11% annualized price inflation rate. Fuel oil and other fuels (household energy) have a three-month run rate of 4.7%, which is an annualized seventy-four percent (74%). Gasoline has a three month run rate of 4.6%, which is an annualized seventy-two percent (72%) price inflation rate.
How dumb does the government believe Americans are? I guess pretty dumb because it seems to get away with it.
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