Originally Posted by bondi688
There is no inflation? My trips to the grocery stores and gas stations every week say otherwise. Airfares have gone up a fair bit. The recent pop up of housing prices will exert upward pressure on cost of living as well.
You response demonstrates that you don't understand what inflation is:
1. Food costs for American hardly matter in the big picture since food would be 5% to 8% of a normal household budget. People focus unreasonably on food when thinking of inflation because they make many more food purchasing decisions in a month than, say, rent. Rent is likely to be 30% of a household budget. Your rent hasn't gone up or you would have complained about that first.
2. Airfares are up because of high fuel prices and low traffic has caused airlines to cut back on flights. Since such increases are not across-the-board, it is not inflation which is due to a change in the value of money and everything it buys.