Monthly bank statements only confirm what Mark Anderson already knows. He’s worse off than he was a year ago.
Mr. Anderson didn’t lose his job. No family members fell ill and went to the hospital. He can’t think of any large, unexpected expense that would have set him back financially.
Bank accounts don’t dwindle all by themselves. So what’s the problem?
“You’re looking at it,” Mr. Anderson said, resting one hand on the gas pump while he swiped his credit card with the other. “This stuff isn’t cheap. Nothing is these days.”
The U.S. Department of Labor released a report Tuesday that put Mr. Anderson’s problem — and the nation’s economic pinch in general — into a historical perspective.
Wholesale inflation surged 1.2 points in July, capping a 12-month span that saw prices rise at their fastest pace in 27 years. Wholesale prices have jumped by 9.8 percent in the past year, the biggest 12 month increase since 1981. Another report from the Labor Department, released last week, showed what any economist already knows. Producers transfer the burden of higher wholesale prices onto consumers. Consumer inflation has risen more in the past year than it has since 1991.
In brief, shoppers have it bad, but the guy running the store isn’t getting rich either.
“I guess you just have to grin and bear it and hope it doesn’t last,” Shelby Elkins said before she filled up her tank.
The inflation numbers reflect prices for every product bought or sold in the economy. Fuel costs, however, have drawn the focus like no other product. If rising fuel prices spelled financial doom in the past year, perhaps consumers will take heart in recent numbers.
Oil peaked at a record $147.27 per barrel in July. Since then, it has fallen more than $30. Retail gas prices have fallen as well. The national average for gasoline had fallen to $3.71 per gallon Wednesday, down from July’s record of $4.11, according to AAA.
Clinton Thomas can be reached at clintonthomas@npgco.com.
Yeah it all sucks. Let's hope our next President can do something about it...
Posted by MichaelH on August 21, 2008 at 8:03 p.m. (Suggest removal)Wishful thinking, Devinbroncs. The only candidate that would have done something about it didn't make it past the primary.
Yes, I'm talking about Ron Paul.
Obama will do nothing. McCain will make it worse. We're screwed.
Time for a revolution!
Posted by hcat on August 21, 2008 at 9:28 p.m. (Suggest removal)Wow a St Joseph City Council member calling for revolution. That's different.
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