Panic in Detroit. Gas up yet again. (one station at $6.09 for regular)
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SolderIron
Addicted Member
Gas is close to $6/gallon locally. It went up 40 cents in a week 
Did an oil change couple weeks ago. Walmart price on 5 quarts was $30+
Did an oil change couple weeks ago. Walmart price on 5 quarts was $30+
I know that the inflation calculator is based on data but is the $500 we spent on a Pioneer receiver in 1975 really equivalent to $3,200 today?
Where did we come up with money like that?
If we made $5 an hour (1975 average wage) back then it would have taken 100 hours to buy it.
At the same 100 hours today, you would have to make $32 an hour. Apparently, $33.50 is the average wage in 2026.
Both wages are gross, not net. So, it would actually take more work hours to purchase it than my example.
I can't begin to grasp it.
A dollar bill still seems like real money to me but apparently, it isn't.
grillebilly
Empty Head
Inflation is based on the cost of a subset of factors. I think food, energy and housing are big contributors to the formula.
You can ask AI to give you the complete process.
I get that some things get cheaper and some more expensive due to factors other than what a dollar is worth. During Covid when everything shot way up, electronics like big screen TV’s went down. That actually lowered the rate of inflation to some degree, even though it wasn’t an item high on the list of things we were scrambling for.
There’s likely some smoke and mirrors in the factoring but the inflation calculator is a good reference on the value changes in my opinion.
It's kind of ironic that you would pick January 1980 as your comparison date because gasoline was higher at that point due to the conflict with Iran (The Iranian Hostage Crisis) and it is now higher due to another conflict with Iran.
- Prior to the Iranian conflict of 1980 regular gasoline averaged 65 cents per gallon.
- The summer of 1980 the average was $1.27 per gallon. (A 49% increase)
- Prior to the current Iranian conflict a gallon of regular averaged $3.22 per gallon.
- Now the average is $4.47 per gallon. (A 38% increase)
Erik Tracy
Everyone's happy when the wizard walks by
San Diego says 'hold my beer'.
Today's report - average gas price is $6.19 per gallon
Refinery shutdowns in CA have not helped.
Today's report - average gas price is $6.19 per gallon
Refinery shutdowns in CA have not helped.
felix_katze
Well-Known Member
Depends. Cash wise, yes, pretty much near equivalent. Goods wise, well the cost of manufactured goods has trended down for some time, with offshoring having a fair bit to do with it. But other services, provided by humans, have trended up, so it explains why you get less for the same money, even though some big ticket items appear to fall in price, relatively.
More than a century, probably close to 4 if my memory serves, of some extensive mathematical modelling of observed data.
Minimum wage in US seems to have stagnated, but in other countries there is CPI indexing, so it moves along with the trend. Prices rise 4%, minimum wage rises 4%. Rudimentry, but works for the most part to avoid large or growing discrepancies.
Yes, welcome to post-tax income calculations.
People saying "money isn't real" is the financial equivalent of "I was travelling in my conveyance". Ignore them.
If anyone says they understand the cause of inflation, they dont. There are competing models and explanations, but none survive rigorous analysis, review and challenge in ALL circumstances.. They could ALL be right at the same time, for whatever reason, and we just dont really "know" a causality that works all the time, every time.
What we CAN do, is model it well enough for practical purposes, observe it in the real world, and use the numbers for practical purposes with a high degree of confidence in the result. Again and again.
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My closest Mobil station, about 1 mile away, went up last week to $4.29/gallon for Regular. Mobil 1.9 miles away, on Route 2 exit, is higher. Easier/quicker for a tanker deliver there than my downtown station. The companies will charge what they think the local market will bear 
$4.29 on my way to work this morning. I save 15 cents/gal by using E15. I predict $5+ by the end of the month.
colortrakker
Thinking in color...
Top Tier shouldn't affect the price. It's the grade that makes the difference. For my car, premium is only recommended...which is good, because it's like $5.49 vs. the $4.59 I've been seeing Regular hovering at this week. One big reason I missed Kutztown this year.
I take solace in not having to pay $6.59 for diesel.
I take solace in not having to pay $6.59 for diesel.
DesertRatt
All Bark, No Bite!
Inflation DOESN'T scale equally for say, eggs, TVs, and houses. For example, almost all manufactured goods go down in COST over time because the production machines get so much better. For example, 16MB (not GB, but MB) of ram cost almost $1,000 in 1984 - dirt cheap now.
Houses: consider this. In 1974 I bought a new 3brd/2bth house in San Jose for $29,500. That specific house today is $1,200,000. That's an increase of 40X. The compounded inflation from 1974 would only account for 6.3X - certainly not 40X! So, it's not accurate to consider all things inflatable at the same rate.
Are we eternally optimistic or just have short memories? Maybe both? Having been around since 25 - 35 cents/gal gas I've witnessed several cycles of alternating vehicle buying choices. We've swung back & forth from big gas-guzzlers to smaller more economical drives. Seems that once high fuel prices abate, we very quickly return to less economical choices. Are we hoping prices will never become uncomfortably high again once they drop?
I'm glad having my 2012 stick-shift Focus because it's good for using around town. Out on the highway our 1999 Gran Prix GT still gets almost 30mpg if I don't goose it too much.
I'm glad having my 2012 stick-shift Focus because it's good for using around town. Out on the highway our 1999 Gran Prix GT still gets almost 30mpg if I don't goose it too much.
I was out and about yesterday (in ABQ) and saw several gas station signs showing $4.99 for Regular gas... ouch.
mrehorst
Super Member
I ride a bicycle around town a lot more than I drive. I used to ride a relatively narrow tired commuter bike, but I sold it and bought an "bike-packing" bike to replace it for the larger wheels, fatter tires, and front suspension, all of which make riding on the mean streets of Milwaukee safer and much more comfortable.
I suspect that one reason many opt for trucks and SUVs is the ever-deteriorating streets and roads in the US. A vehicle that can supposedly survive off road should be relatively comfortable rolling down pot-holed streets. My brother used to drive a Mercedes sedan with low profile tires. After breaking two wheels on pot holes within one year, he traded that car in for a Jeep.
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