[DcifrThs]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]


Have any of you people gone to the grocery store lately? A gallon of milk is about $6 where I live. Don't [censored] try to tell me inflation is at 2%!



[/ QUOTE ]

I'm not trying to undermine your point, I'm just asking a question here. Isn't part of the problem with the price of milk (and other consumables) that the supply is artificially constrained? I'm certainly not saying that the dollar value is not falling, but doesn't government subsidizing and control of supply and demand also have a pretty big impact on the price of some of these goods?

[/ QUOTE ]

Farm subsidies and price supports are pretty stable over time. The fact that the price of milk at any one time is not reflective of a free market in milk production shouldn't distract from the fact that the price, whatever it is, is inflating pretty rapidly. Milk was just an example, by the way. Grocery prices have doubled in the last year, and are likely to double again in the next.

[/ QUOTE ]

but food prices (grains, milk etc.) are nonlinearly linked through global demand. not just in the US. you can't pin that on one source.

there are things that we use everyday that also decrease in cost and/or increase in value. this is tough to capture and it legitimately downwardly biases inflation.

Barron