Inflation? Only If You Look At Food, Water, Gas, Electricity And Everything Else

Tyler Durden's picture

Submitted by Michael Snyder of The Economic Collapse blog,

Have you noticed that prices are going up rapidly?  If so, you are certainly not alone.  But Federal Reserve chair Janet Yellen, the Obama administration and the mainstream media would have us believe that inflation is completely under control and exactly where it should be.  Perhaps if the highly manipulated numbers that they quote us were real, everything would be fine.  But of course the way that the inflation rate is calculated has been changed more than 20 times since the 1970s, and at this point it bears so little relation to reality that it is essentially meaningless.  Anyone that has to regularly pay for food, water, gas, electricity or anything else knows that inflation is too high.  In fact, if inflation was calculated the same way that it was back in 1980, the inflation rate would be close to 10 percent right now.

But you would never know that listening to Federal Reserve chair Janet Yellen.  In the video posted below, you can listen to her telling the media that there is absolutely nothing to be concerned about...

And it is really hard to get too upset with Janet Yellen.

After all, she reminds many people of a sweet little grandmother.

But the reality of the matter is that she is simply not telling us the truth.  Everywhere we look, prices are aggressively moving higher.

Just the other day, the Bureau of Labor Statistics announced that the price index for meat, poultry, fish, and eggs has just soared to a new all-time high.

This is something that I have repeatedly warned would happen.  Just check out this article and this article.

And it isn't just meat prices that are going up.  One of the largest coffee producers in the entire world just announced that it is going to be raising coffee prices by 9 percent...

It took the Fed long enough but finally even it succumbed to the reality of surging food prices when, as we reported previously, it hiked cafeteria prices at ground zero: the cafeteria of the Chicago Fed, stating that “prices continue to rise between 3% and 33%.” So with input costs rising across the board not just for the Fed, but certainly for food manufacturers everywhere, it was only a matter of time before the latter also threw in the towel and followed in the Fed’s footsteps. Which is what happened earlier today when J.M. Smucker Co. said it raised the prices on most of its coffee products by an average of 9% to reflect higher green-coffee costs.

Not that coffee isn't expensive enough already.  It absolutely stuns me that some people are willing to pay 3 dollars for a cup of coffee.

I still remember the days when you could get a cup of coffee for 25 cents.

Also, I can't get over how expensive groceries are becoming these days.  Earlier this month I took my wife over to the grocery store to do some shopping.  We are really ramping up our food storage this summer, and so we grabbed as much stuff on sale as we could find.  When we got our cart to the register, I was expecting the bill to be large, but I didn't expect it to be over 300 dollars.

And remember, this was just for a single shopping cart and we had consciously tried to grab things that were significantly reduced from regular price.

I almost felt like asking the cashier which organ I should donate to pay the bill.

Sadly, this is just the beginning.  Food prices are eventually going to go much, much higher than this.

Also, you should get ready to pay substantially more for water as well.

According to CNBC, one recent report warned that "your water bill will likely increase" in the coming months...

U.S. water utilities face a critical economic squeeze, according to a new report—and that will likely mean higher prices at the water tap for consumers.


A survey by water-engineering firm Black & Veatch of 368 water utility companies across the country shows that 66 percent of them are not generating enough revenue to cover their costs.


To make up for the financial shortfall, prices for water are heading upward, said Michael Orth, one of the co-authors of the report and senior vice president at Black & Veatch.


“People will have to pay more for water to make up the falling revenues,” he said. “And that’s likely to be more than the rate of inflation.”

Of even greater concern is what is happening to gas prices.

According to Bloomberg, the price of gasoline hasn't been this high at this time of the year for six years...

Gasoline in the U.S. climbed this week, boosted by a surge in oil, and is expected to reach the highest level for this time of year since 2008.


The pump price averaged $3.686 a gallon yesterday, up 1.2 cents from a week earlier, data posted on the Energy Information Administration’s website late yesterday show. Oil, which accounts for two-thirds of the retail price of gasoline, gained $2.49 a barrel on the New York Mercantile Exchange in the same period and $4.88 in the month ended yesterday.


The jump in crude, driven by concern that the crisis in Iraq will disrupt supplies, may boost pump prices by 10 cents a gallon at a time when they normally drop, according to forecasts including one from the EIA.

And the conflicts in Iraq, Ukraine and elsewhere could potentially send gas prices screaming far higher.

In fact, T. Boone Pickens recently told CNBC that if Baghdad falls to ISIS that the price of a barrel of oil could potentially hit $200.

Of course the big oil companies are not exactly complaining about this.  This week energy stocks are hitting record highs, and further escalation of the conflict in Iraq will probably send them even higher.

Meanwhile, a "bipartisan Senate proposal" (that means both Democrats and Republicans) would raise the gas tax by 12 cents a gallon over the next two years.

Our politicians have such good timing, don't they?


And our electricity rates are going up too.  The electricity price index just set a brand new record high and there are no signs of relief on the horizon...

The electricity price index and the average price for a kilowatthour (KWH) of electricity both hit records for May, according to data released today by the Bureau of Labor Statistics.


The average price for a KWH hit 13.6 cents during the month, up about 3.8 percent from 13.1 cents in May 2013.


The seasonally adjusted electricity price index rose from 201.431 in May 2013 to 208.655 in May 2014—an increase of about 3.6 percent.

If our paychecks were increasing at the same rate as inflation, perhaps most families would be able to weather all of this.

Unfortunately, that is not the case at all.

As I wrote about recently, median household income in the U.S. is now about 7 percent lower than it was in the year 2000 after adjusting for inflation.

And if realistic inflation numbers were used instead of the government-manipulated ones, it would look a lot worse than that.

Inflation is a hidden tax that all of us pay, and it is systematically eviscerating the middle class.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Reaper's picture

Inflation? What is truth? What the government tells you, or what your lying eyes observe?

NidStyles's picture

You can't trust your eyes, only the magic vooodooo witch doctors with obscure degrees and pees of the H dees can understand it. You just have to trust them :-)

Greenskeeper_Carl's picture

Inflation? Shit..... I just gots me a big assed flat screen teevee for cheap. Plus, my iPad scans retinas and shit.

SWRichmond's picture

Inflation?  Now we calculate using "substitution" method, so we substitute shit for shineola.  Cheap!

WayBehind's picture

You spent only $300? I shop at Costco every week for family of 4 and I always spent around $500 and I can assure you that there is no filet mignon in my cart...

Shocker's picture

Just everything you need to survive is going up.. But that new big screen tv, / computer are cheaper.

Not good into todays Job market -


dryam's picture

"And it is really hard to get too upset with Janet Yellen.

After all, she reminds many people of a sweet little grandmother."

The government's new M.O. is to put women in positions such as Yellen's because it's less socially acceptable for reporters and such to aggressively go after a female for lying, etc.  All is fair game when it is a man in the hot seat, but otherwise it will be the male accuser who is villified when the accusee is a female.

Social psychology 101.

CheapBastard's picture

10%/year for the last ten years is about right.


Crackers, bread, chocolate, gas, ultilities and property taxes...not to mention what repairmen charge these days. I save more money by taking Fridays off and learning a trade at the local community college such as plumbing then if I stayed at work and had to pay the plumber [or whomever] with after-tax money.

Yet the Fed has phucked all those Seniors on a fixed SS income with a near-zero COLA. Poor folks. I know, I know some Semiors maybe deserve it since they were not frugal ... but it still sucks imo.

Boris Alatovkrap's picture

Inflation and war... While create inflation and war, Central Bank Cabal is work vigilant for converting of wealth of citizenry into spoil of robbery.

Manthong's picture

do not forget property taxes..

is is their best theft device.

.. and the reason I am divesting everything and going to ground.

Manthong's picture

but.. but.. but

granny always told me that her sugery concoction would taste good.

JPM Hater001's picture

<--------- Wow
<--------- noise

Oh regional Indian's picture

I like the word biflation someone here coined a long time ago.

Only, now it gives me visuals of a boobjob gone wrong....

Hulk's picture

Caviar Emptor was the coiner of that phrase and idea...

Citxmech's picture

The term/concept has been around quite a bit longer than the Hedge:  

Raging Debate's picture

NegativeRates - No not incompetent. Corrupt and drastically overpaid. I am a reformed sociopath. These are not dumb people folks. I have strong intellectual gifts but irrational emotional fears (or use to). If your imbalanced you'll tend to cheat using that intellect to feel secure to survive or prosper.

The causation was physical in my case. I have diverticulitis. A divestive disorder where minerals are not absorbed to be processed into chemicals for the brain such a lithium and seratonin creating acute anxiety disorder. I don't want to go deep here but I suggest seeing an MD if you have mood disorders to determine causation. Shrinks will just tell you that you lack chemicals in the brain which is a corrolary, not causation.

In my profession I needed to learn some pharmocology. A term which helped me get better was ADME. It means absorption, distribution, metabolism and excretion. Most mental illness (creating sociopathy) are absorption issues from a digetive disorder. Next and more rare are blood disorders. Last which pyschiatry tests for (but not the others) is thyroid.

I know a woman that was on heavy lithium for 40 years. Overweight, unable to work. She was lucky she had a saint for a husband he did everything except clean which she did. Last year she saw MD and was diagnosed with a blood disorder (the D in ADME). She is off lithium, and gets immuno therapy. She lost 50 pounds and is like a new woman.

I did symptom clustering using spreadsheets (I am lucky my business is data driven) to identify possible causation and narrow it down to only two possibilities. My girlfriend says I should become an MD or shrink. In five years I will go to Cambridge for quantum physics which I enjoy dabbling in but there are many answers in that field that can be applied to create advanced medical tech. I'll do this to help my species and for no other reason.

The good news acting that way is that it creates a lot of adventure and stimulating conversations with very sharp minds. Einstein was right.
"The only life worth living is a life on behalf of others." You have more fun that way but one at times must overcome the medical issues to fully live that kind of life. Anybody interested in what I learned about cause and symptoms as I described above can email me at . I'll share what I know and do some symptom clustering to point toward causation and narrow it down for you but you will still need an MD for proper diagnosis. I was going to pattent this process and compete against a couple companies doing this but think I can do something much bigger as mentioned.

I am living proof sociopaths can change.

The International Jew's picture

Socopathy is an idea and a feeling (albeit an electrochemical one).  It is not a clinical issue.  & we have it for a good reason, b/c the 'goyim' are sooo fucking stupid its way too easy to hate them.  & its just... too easy to prey on stupid people.

Do not waste your time in college.  I repeat.  Do not.  Unless you are planning on paying nothing on that debt.  B/c college costs are hyperinflated.  & you can use the internet and textbooks to learn everything! ;)


Now when it comes to your body.  all you need to do, is get a 'juicer'.  Buy a lemon, kiwi, 2 apples, 2 oranges, a beet, several carrots, several leaves of kale or chard, a lime, nectarines or peaches if you got em, and zuchini.

Do not use grapefruit.  It doesnt taste good with the others.  & the lemon and lime should sort out your need for an alkaline blood system.  Acidic food makes alkaline blood.  and vice versa.

This concoction wil make you shit several times in a day or 2.  It cleanses your body, by overloading it with vitamins and nutrients.  I live off of peanut butter and rasperry sandwiches, and juicing.  Brain has never been stronger.


Do not take any 'medications' for mental disorders.  NOTHING.  Self improvement and vegetables and fruits are all you need.  Stay away from doctors (some antibiotics are good ie doxycycline for lyme), and use colloidal silver for infections and cleaning water.

A genius told you this.  Go forth and help the idiots who want it, and trample the idiots who don't.

Raging Debate's picture

TheInternation - Already using text books and Internet for physics. I will pay cash for the college. The only real reasoning is for lab access. I can't afford the equipment to test theories. In the interim, I built a blogging platform and will offer scientists access and to manage it for them to learn and communicate with them.

I agree on acid balancing for health as you described but even after exercise and proper diet stilll need light dosage of chill pill or I go hypomanic. A lot of states give people a hard time getting these and shrinks often misdiagnose and precribe non-narcotics with far more side effects. Why a lot of these kids go on a shooting spree.

I am sure if i didn't do the right diet and exercise I would need far more dosage of meds. But I tried 100% natural remedy. What works for you may not work for everybody.

A positive of the disorder for me. When brain lacks chemicals my body produces adrenaline in it's stead which increases beta brain waves. Einstein had behavioral issues when young. Edison digestive issues and worked 20 hours a day. Ever been to his home? He never smiles in his pictures. So I can be a scientist and add a contribution but also come down at times to smell the roses with a chill pill.

Chief Wonder Bread's picture

I can't speak to the particulars of your case but I agree that a lot of sociopathy is biochemical in origin. When I was younger I believe I had a strong sociopathological profile with acute anxiety (never diagnosed or treated) and I believe it was caused by the stress of having terrible recurring headaches with serotonin issues, depriving me of sleep for days and weeks on end. When I was 50 yrs old, I had a complete remission of these headaches and have been headache-free since then. The difference in stress between now and then is like night and day. I am still coming to grips with how profoundly this affected my life. I don't know what I did or didn't do to have this miracle of remission at the age of 50 but very likely it had/has something to do with the ADME cycle you mentiioned. I did go on a paleo diet and lost a lot of weight several years later at the age of 52-53. It is possible this has kept me from having a relapse.

nickels's picture

Our lawmakers know that an honest appraisal if inflation would require an increase in COLA payments that would blow up their game.

DavidC's picture

No they're not, they're completely incompetent.


Bohm Squad's picture

Mom's Robot Oil

"Made with 10% more love than the next leading competitor."


bidaskspread's picture

Yet, the seniors and others elect the same politicians term after term that are promoting the printing. Who really is the one to blame?

The item I find interesting is that it's not higher. Not only is the. Fed printing but the government is spending more. 10% is modest if you are printing trillons with annual deficits in the trillions. Makes you wonder if a dollar is really worth what it can currently buy. I am willing to bet our military will ensure it is.

Flagit's picture

We could make Sean Connery the Backhand Czar.

Borrow Owl's picture

"After all, she reminds many people of a sweet little grandmother."


I'm pretty sure neither one of my grannies was a silver-haired bull dyke sporting a flabby six-pack and a 16" steel-studded strap-on.

NoPension's picture

And interesting how you can still get a gallon of gas for .25

Well, if you use REAL money....... 1934-1964 Washington Quarter
Face value. .25
Silver value ( 6/19/2014). $3.7724

OldPhart's picture

(does not apply in California)

Renewable Life's picture

Yep, $4.50 a gallon in CA in most places!!

Skateboarder's picture

We've been peaking on and off at $4.20 in Silicon Valley. Represent.

Manthong's picture

I have made that comparison often on this site.

just wait.. soon that '64 quarter wiill buy you a couple of gallons .. not because oil is going down in price, but because Ag  going to be precious again.

o2sd's picture

I remember what a revelation it was 20 years ago when I learned that prices were not rising, but the value of money was falling.

That's when I knew it was just a silly game to keep the mentally stunted occupied and motivated. Can you imagine the trouble the bulk of the hoi-poloi would get into if they knew they how rich they actually are?


TheMeatTrapper's picture

Being able to trap my meat supply and grow some of my vegetables makes a huge difference in my life. There's no way I could feed my family the quality of food I do if I had to buy it. Simply no way. I've got to continue to expand my gardening skills. 

I'm milling organic Montana hard red wheat for my pancakes, tortillas and biscuits - wheat that I bought 10 years ago, People thought I was stark, raving insane when I bought 2,000 pounds of wheat, Kamut and spelt and then packed it in buckets. 

I'm still eating good at 2004 prices. 

Here's a video review on my Country Living Grain Mill after 9 years of constant use:

Bohm Squad's picture

LOL...The above post gets down arrows.  That strikes me funny for some reason.

I've been doing LTS at 2010 to 2014 prices and could only wish I started in 2004. 


Harbanger's picture

Nice, I have the same mill.  Recently I tried making some lentil flour with it and it works great, I can get it to rise like bread using my sourdough gooch.  I've also tried different hard beans through the mill which I use as thickeners for soups.  Another great thing about storing seeds is you can sprout them to get some additional nutrition if necessary.

Bendromeda Strain's picture

    sourdough gooch

Don't talk about your mother like that!

/bread humor

Flagit's picture


Before that video when i read your posts, you sounded like James Earl Jones. *Shrug*

But seriously, nice setup. I guess the next step would be to add solar power to that grinder.

What podcasts could you recommend, and would you like to say how many downloads you have had for your trapping videos?

TheMeatTrapper's picture

"What podcasts could you recommend, and would you like to say how many downloads you have had for your trapping videos?"


By far the best trapping related podcast is It's done by my friend Clint Locklear who's a professional trapper and a very outside the box thinker. 

Here is a link to the episode where he interviewed me one late night:

I've several hundred downloads of my little video. I did it mostly as a way to introduce people to modern trapping and to cover the cost of my website. I've been promising myself to do a full fledged professional series of videos from A to Z  - but real life keeps getting in the way. 

krispkritter's picture

I wouldn't advertise that you store food, you'll be labeled a terrorist, or worse, a prepper.

samcontrol's picture

about $300 in Argentina, but that does include the filet ."lomo" here.

Raging Debate's picture

WayBehind - Holy crap! You spend $125 a week per person for food even buying bulk at Costco? Not arguing the outrageous inflation of the last decade but I would put my family on a diet with no snacks. Here is what I did to reduce cost and start getting in shape (healthcare outrageous but have decent white, experienced doctor at $78 cash per office visit and get meds at Sam's).

Mine is $80 a week, I shop at Sam's. This is what I get for it. I eat chicken breast at $1.95 a pound, 90% lean hamburg for $2.90 a pound, romaine salad mix for ruffage, eggs and cheese (love ommletts) and occassionally spinach. I buy multivitamin for supplement and Omega-3, buy no name brand crystal light at Wal-Mart for $10 for two weeks of guzzling lots of it. Buy canned mushrooms and onions at Sam's use spices. I am always stuffed.

I am on Atkins and weigh 325 at 6'1 from 350 pounds a few months ago. Oh and I bought a dehydrator and make my own steak snacks at $4.50 a pound using stew beef every other week. Clean bill of health last two annual checkups and blood tests (pay $30 at same doc paying cash).

Speaking of the water bill in the article and crap, the sewrage bill went from $50 to $80 a month over the last year.

This is the second leg of the "W" shaped depression, I expect deflation in commodities after the summer. T. Boone can jump off a cliff with his $200 a barrel oil blather of mullahs farting causing oil price. It's currency devaluation and of course for people with half a brain realize government and corporate cronyism has gotten them very rich mismanaging the economy into the ground.

It is getting talked about now in MSM because when growth stalls for the top 1-3% it affects the electorate and you begin to see change. We are a reactionary species, those outside of this strata screaming in pain ever louder a long time ago.

Like Jefferson said about central banking "first by inflation the by deflation". Jefferson only got it half right though. Banking retreats and starts playing nice again when they see there franchise at risk by government. They in turn wish to survive politically and are now just starting to see voter revolution.

I will never forget all of these lessons of how our world really works and apply it so I may prosper. Knowledge is still power.

Absinthe Minded's picture


What's your recipe for steak snacks in your dehydrator? I would like to try it.

Raging Debate's picture

Absinthe - Ingrediants are 2 lbs chopped stew beef, vinegar and Webbers Steak Chop seasoning. I put two pounds steak in freezer bag with a cup of vinegar and 1/4 cup of seasoning. Shake well. Then for time with the debydrator 4 1/2 hours. I put the steak on baking pan and season it again 1/4 cup but some may like it more or less salty. Then I bake at 410 degrees (preheated) for 25 minutes.

Sometimes I eat them right out of the oven for supper also but I tend to use it for grab and go snacks. YUM! Let me know how it turns out

Absinthe Minded's picture

Sounds great! Always looking for a new snack to try, great when you're out hiking, fishing, golfing or whatever. I'll let you know how they come out.

Toronto Kid's picture

What do you use for a dehydrator?

Raging Debate's picture

Toronto Kid - My model is a Dehydro. My gf bought it at Wal-Mart. She aid there were two and got me the bigger one. Think she said it was around $40. I got it because I was sick of paying $5 for a six ounce bag of steak chunks. So now I get 32 ounces for $5 including the spice and they taste better.

northerngirl's picture

Wow!  Great prices on meat, the Sams in my area the price are $1-$2 per pound higher.

rabbitusvomitus's picture

I also shop for a family of four each week but spend on average $140. per week. I barely coupon at all but I closely check the circulars and hit multiple stores.  We stock up on beef and other meats in quantities when on sale and I vacuum seal them and freeze them in a chest freezer. Also, whenever possible we shop at stores that offer gas points like BJ's or stop and shop.  Prices are rising but you can still (for now anyway) do okay BUT it's like a part time job trying to save a buck. 

.Gov has got MAJOR problems coming vis a vis social unrest as "non existant" yet clearly existant inflation takes a bigger and bigger bite out of our buying power. 

Stock up now, who knows what tomorrow will bring. 


shovelhead's picture

Times are tough in my house...

I have buy artificially flavored shit.