Nice charts Dmas! 2 things from those really is firstly the aspect we discussed a while back with regards to California being so much more expensive than other States/cities- but more alarming still is how much those prices for all the places have gone up in less than 3 months! Those charts started 24th January and some of the prices have rose by so much and so dramatically in such a short amount of time!!
The really scary thing to realize here is higher prices at the pump equal higher prices for everything. I don't know what 20% jump in gas price will result in price-wise for everything else. But I know it will have an effect, and has had an effect over the past year or so.
That's one awful thing to consider then- the fact that as a result of gas going up, within 3 months the whole cost of living has gone up! And if everything's going up like the fuel prices- so around 20%, maybe a little less for other things- then thats a hell of a lot of extra money you're having to spend each month! I just can't get over the fact your gas has rose so dramatically in just 3 months- its insane!!
I doubt the cost of living will go up 20%. It doesn't work that way. I don't know the ratio, but I'm sure there are economists who do. I'd guess a 20% jump in fuel would relate more to a 5% in jump in cost of living. But that's a pure guess. 5% is still a considerable jump when you think that they try to keep annual inflation to around 4% or 5%. If we have a 5% increase in 3 months, and fuel costs continue to raise we could be looking a cost of living increase of 10% or more for the year. That hasn't happened in almost 30 years (interestingly enough it happened then for many of the same reasons, fuel costs jumping, and out of control govt spending).
Of course the pessimists are predicting hyperinflation similar to what Brazil and Argentina went through in the 1990's. I hope that doesn't happen, and for some reason, don't think it will. But it's a scary thought to think that, if we do see a cycle of hyperinflation, $100 may be the equal to $10 in just a couple years.