Yep, more proof of deflation...

[FUEGO]

It must be like Global Warming. Coldest Winter in a long time, it's global warming's fault. Makes since, so therefore and increase in price is deflationary. All you have to do is be able to speak Washington talk.

Per my official 2009 Official Washington Talk manual, they changed the name from "Global Warming" to "Global Climate Change" (GCC if you want to sound pro-like). Just in case it doesn't just get warmer, but instead it gets cooler, or cloudier or sunnier or dryer or wetter or windier or more calm. Just a little CYA from the '09 manual.

 

[Gone4Good]

http://www.usps.com/communications/newsroom/2009/pr09_018.htmDeflation? Yeah, right.

This is why everyone thinks inflation is higher than it really is. We focus on a 5% increase in a $0.42 item that we use a couple of times a month and completely ignore a 50% decrease in a $4.00 item (gasoline) that we use every day.

 

[deepc]

This is why everyone thinks inflation is higher than it really is. We focus on a 5% increase in a $0.42 item that we use a couple of times a month and completely ignore a 50% decrease in a $4.00 item (gasoline) that we use every day.

Unless you consider that this item spiked to $4, went down to $1.68, and in the past thirty days has found its way back to $2.03. Guess where it'll be this summer?

 

[Dawg52]

Back to the subject at hand. My two largest bills are health insurance and property tax which combined are 23% of my monthly living expenses. I don't think I am going to see deflation in these two areas.

That's the darn truth. How come we haven't seen deflation in health care cost? LOL. Not going to. And I have been hearing buddies complain about property taxes going up due to reappraisals on their homes. No way they could sell at the reappraised value. Crazy.

 

[FinanceDude]

EVERYTHING is one big CONSPIRACY.........

I like simple math. When oil was at $140 a barrel, gas in my area was $4.20 a gallon. So, by applying simple math, I think gas should be $1.20 a gallon in my area when a barrel of oil is $40, and so on.

The fact that it isn't and never has been makes me think there's collusion......

 

[ERD50]

Unless you consider that this item spiked to $4, went down to $1.68, and in the past thirty days has found its way back to $2.03. Guess where it'll be this summer?

I dunno, but I would guess higher than where it is in winter/spring? That seems to be the trend I see here:

Gas Price Historical Price Charts - GasBuddy.com

Just guessing again, but it might have something to do with that pesky supply/demand thingee? Do you have another theory?

-ERD50

 

[ERD50]

EVERYTHING is one big CONSPIRACY.........

I like simple math. When oil was at $140 a barrel, gas in my area was $4.20 a gallon. So, by applying simple math, I think gas should be $1.20 a gallon in my area when a barrel of oil is $40, and so on.

The fact that it isn't and never has been makes me think there's collusion......

I'm assuming sarcasm there with the smileys, but in case anyone missed it, the math is *too* simple.

Crude only makes up about half the cost of gas at the pump:

EIA - Primer on Gasoline Prices

-ERD50

 

[samclem]

I'm assuming sarcasm there with the smileys, but in case anyone missed it, the math is *too* simple.

Crude only makes up about half the cost of gas at the pump:

Also, even the costs that are embodied in the gasoline are only indirectly related to the price. The real determinant of price of oil and the price of gasoline is supply/demand. If 90% of refineries stopped working at the same time, the gasoline wouldn't cost a penny more to produce (in fact, production costs would go down as crude oil got plentiful and went down in price) but the price of gasoline would skyrocket (thank goodness) as demand outstripped supply. At that point I would much rather have gas priced at $15/gallon (and available) than $2/gallon and unavailable.