The Campbell's Soup Index of Inflation

[Leo]

It is not the so much price actually going up, nor is it the cost of wages. It is not even so much the cost of foolish government regulation driving production prices up. It is that the exploding debt and the resulting printing of valueless money has diluted the value of our current money. ie: your dollar is not worth anything anymore

 

[88GT]

Were those historical prices in 2012 dollars?

If not, $0.10 in 1950 is $0.95 in 2012 money.

Calculate the value of $10 in 1950 - Inflation on 10 dollars - DollarTimes.com

The whole point was to show the inflationary effect on prices. Converting them negates that effect.

 

[ghuns]

I go by the Whopper Inflationary Index. When I started a job in 1992, Burger King was the only restaurant around. I got a Whopper w/cheese meal nearly every day, what can I say, I was a health nut. It cost $3.33.
I stopped by a BK the other day for the first time in several years and got my beloved Whopper w/cheese meal, it was $7.14.

 

[IndyDave1776]

Were those historical prices in 2012 dollars?

If not, $0.10 in 1950 is $0.95 in 2012 money.

Calculate the value of $10 in 1950 - Inflation on 10 dollars - DollarTimes.com

I think you missed the point. Inflation, the point at issue, is the reason why a 1950 dollar is not equal to a 2012 dollar.

 

[Twangbanger]

If we "little people" want to understand what "Big People" mean when they talk about inflation, we have to get familiar with the term "Wage Pressure."

Let's go back to the previous poster's statistic that Food and Energy comprise 38% of consumer spending, yet are excluded from the inflation calculation. How does that make sense? Because to the Government, inflation is intended to measure HOW EFFICIENTLY THE ECONOMY IS KEEPING YOUR WAGES UNDER CONTROL. Chances are, the products and services which you work to make a paycheck to produce, are included in the inflation calculation. But - almost 40% of the stuff you spend that paycheck on, is not included. When your work products go up in price - and your paycheck goes up - it shows up as "inflation." When you spend more on energy and food - it doesn't.

Obviously, the inflation calculation is not designed to gauge the amount of pain you're feeling in the supermarket checkout line. It's designed to measure something else. Federal Reserve economists talk about Wage Pressure as if it's a fearful thing to be avoided. When you hear the term "Inflation," substitute the term "Wage Pressure," and you'll be on the road to understanding why the Fed Gubmint's inflation numbers don't seem to jibe with what you're feeling in your life. Keeping a lid on your wages is what they want to measure.

 

[BogWalker]

Would a chart showing wages at various time points adjusted for inflation and compared to our current wage be of any use? I figured it might tell if actual wages have gone up or down or what.

Is there a metric for consumer purchasing power? To me that is the real meaningful set of numbers. If prices go up, but wages go up accordingly, we have inflation, right? If the purchasing power of the consumer stays the same though (I can buy this much crap with my wage, and even though prices are up my wage is up so I can still buy just as much crap) does the inflation make a bit of difference?

Of course if wages don't rise to meet inflation we lose purchasing power and that is trouble.

Anyone get what I'm trying to say?

 

[Mr Evilwrench]

There are ways to calculate all that stuff, but you can't trust government statistics for anything. You have to seek the statistics behind the "statistics". The CPI, which is supposed to measure inflation, leaves out the most important costs, food and fuel. Unemployment leaves out anyone whose unemployment benefits have run out. Look at U6 instead of the U3 they report. The stock market is being pumped up by .gov buying with pretend money rather than actual value. These are all games they play, but reality can be denied only so long. We're in for a day of reckoning.

 

[88GT]

Some of you are making this more complicated than it really is.

 

[BigMatt]

This is a great thread. I agree that some people are trying to make this more complicated than it really is.

My only interjection is that I think we should also give a price per OZ since Campbell's changed the number of ounces in the can.

I would also like the sources for the information used in the study.

 

[Lucas156]

Are you guys taking into account the cost of food as a percentage of income? We spend less on food as a percentage of income than we used to grant it the food doesn't taste as good as it used to.

 

[Expat]

I have never been able to understand how the CPI no longer includes food or energy costs. For most of us lower and middle income folks, that is where most of our money goes, other than housing.

 

[BigMatt]

I have never been able to understand how the CPI no longer includes food or energy costs. For most of us lower and middle income folks, that is where most of our money goes, other than housing.

The way I understand it: The government is looking at larger trends and food and energy are too volatile to include in the calculation.

It is a bogus reason, but it is what it is.

 

[Expat]

The way I understand it: The government is looking at larger trends and food and energy are too volatile to include in the calculation.

It is a bogus reason, but it is what it is.

They could adjust for that, calculate it based upon a 3 month running average or something. Like you said, just bogus gubmint BS.

 

[88GT]

Are you guys taking into account the cost of food as a percentage of income? We spend less on food as a percentage of income than we used to grant it the food doesn't taste as good as it used to.

It doesn't matter.

And unless Campbell's changed the size multiple times, neither does that.

 

[smokingman]

I am going today to pick up a few items.

I will add the price from today.

 

[Expat]

I miss rambone and 88GT.

 

[patience0830]

I miss rambone and 88GT.

Yup. The free market capitalists have left the building.

 

[phylodog]

Rambone and I crossed swords many times but I'd be lying if I said he didn't change my perspective on a few things.

 

[smokingman]

Almost forgot to post my result.

$1.09 4/4/2020

 

[Ingomike]

Almost forgot to post my result.

$1.09 4/4/2020

And yep, I also just gave charity a 50 inch plasma TV I paid $800 in 2010 for that I have a catalog showing $8000 in 2003 That I replaced in January with a Samsung 60 inch that I paid $389 for. Prices are plummeting...