Steep rise in food and gas prices under Obama

We are told that the U.S. rate of inflation for the month of December 2011 was a low 2.96%, and that the average for the year of 2011 was 3.16%.

But if your wallet seems a little lighter after a trip to the grocery store or gas station, you’re not imagining things. It’s just that — Surprise! — our government does not include food and energy prices when calculating the rate of inflation.

The inflation rate is calculated based on the Consumer Price Index (CPI-U) compiled by the U.S. Bureau of Labor Statistics (BLS) and is based upon a 1982 Base of 100. A Consumer Price Index of 158 indicates 58% inflation since 1982, the commonly quoted inflation rate of 3% is actually the change in the Consumer Price Index from a year earlier.

To measure the cost of living for consumers and come up with the Consumer Price Index, the Bureau of Labor Statistics prices everything consumers spend money on — haircuts, plane tickets, medical care, clothes, etc.. Then all of the expenditures are categorized and weighted based on the amount that the average consumer spends on those categories. The percentage change from month to month is the rate of inflation, and it’s usually expressed as an annualized number.

But the BLS discards two categories — food and energy — when calculating the core inflation rate because, it is argued, the prices of food and energy are easily affected by the capricious nature of weather and political winds.

That, of course, makes the official inflation rate quite deceptive because the plain truth is that a big chunk of our pay checks actually goes toward food and gas. And, it turns out those prices have skyrocketed under Obama.

Christopher Goins reports for CNS News, January 20, 2012, that during the presidency of Barack Obama, the prices of the following have increased by double digits, according to BLS data:

  • The price for a gallon of regular unleaded gasoline in the city has jumped 83%, from $1.79 in January 2009 to $3.28 by December 2011.
  • The price of one pound of 100% ground beef has gone up 24%, from $2.36 in January 2009 to $2.92 by December 2011.
  • The price of one pound of sliced bacon has gone up 22%, from $3.73 in January 2009 was $3.73 to $4.55 in December 2011.
  • Ice cream prices, for a half-gallon, rose 19.1%, from $4.44 in January 2009 to $5.25 in December 2011.
  • Whole wheat bread prices increased 5.02% from $1.97 in January 2009 to $2.07 in December 2011.
  • The average retail price of a dozen Grade A eggs increased 1.30%, from $1.85 in January 2009 to $1.87 in December 2011.
  • Only the price of whole milk prices slightly declined by 0.28%, from $3.58 in January 2009 to $3.57 in December 2011.

Two groups of Americans are especially affected — the poor and the elderly.

Poor and low-income Americans are most affected by increases in food and gas prices. At the same time, older retired Americans who depend on income generated by interest on their savings have seen their income dwindle to near nothing because of the low interest rates offered by banks and the U.S. Treasury. Those rates, calibrated to what the government claims is the official inflation rate, are at a historic low, barely above 1-2%.

How are we liking the Hope and Change?

~Eowyn

19 responses to “Steep rise in food and gas prices under Obama

  1. In 1973 when my husband and I were first married I budgeted $25. a week for food. I don’t live on a budget like that anymore but would think it is at least $500 per month and double that if I’m having company.

  2. Most of this can be traced to the rise in oil prices, as the price of most commodities is directly tied to it.

    -Dave

  3. hope and change? i have hope we can change the idiot in the white house with another lesser idiot

  4. Something else should be considered when talking about inflation and that’s the shrinking size of the product and/or packaging. Is that pound of bacon really 16 ounces? Is that gallon of ice cream really a gallon?

  5. Thank you, Dr. Eowyn, for this important facts containing relevant information as to the “hope and change” provided by this irresponsible and dubious Administration. I notice so clearly how groceries have gone up in price. Other people speak with me about it in the grocery store – perfect strangers who are having a hard time too with all of the increase in prices! I am amazed at how much coffee has gone up in price! I noticed Velveeta cheese, the cheese block, is now $5.88 at Wal-mart. I remember when it used to be $3.99! I ususally stay away from processed food, but occasionally, I will make the Velveeta-Rotel dip when I am making tacos. I thought the $5.88 price was utterly ridiculous. No one was buying it either! People were making comments standing around the big pile of Velveeta cheese that they would not pay that price! Caveat emptor to the American population – look to Obama’s ruining of our economy for the explanation!

  6. I noticed, just for a simple example that Country Crock Margarine small and large tubs have both doubled. And that’s just one thing!!!

    And Melthemean is right; packaging is shrinking. I’ve got proof on my shelf.

  7. Fewer saltines in a sleeve, smaller cans of tuna, fewer ounces in a “1/2 gallon” of ice cream, a pound of coffee that is 13 oz, a five pound bag of sugar is now three……… oh how I love to complain about these! And these smaller packages still cost alot more. Thank goodness a dozen eggs are still a dozen! I do buy them from a farmer directly since I prefer freerange eggs but they are $4.00 a dozen. I could complain all day but I am very grateful for the fact that we can afford to buy whatever we need or crave.

  8. There is a food shortage on it’s way. The crops were smitten by drought and floods here in the US and many animals were slaughtered because of a lack of corn and other things they are fed on. There are people starving in this world, and on top of that they are dying. It’s part of the genocidal nature of the fascist austerity agenda that is being called for by the Administration and Congress. It is an artifically induced situation. The shortage of food and money is engineered by the banking cartels. We have the tools at our fingertips to reorganize our society, we have only ourselves to blame.

  9. He did promise “change”… but into what he didn’t say.

    • Those of us that knew of Skippy’s background know exactly what kind of “change” he wanted. Unfortunately the sheeple couldn’t see it (or wanted it).

  10. This story is absolutley correct about food prices going up. Back in the end of November, a box of kraft Mac & Cheese was a $1.29. I went the other day and the same box is now a $1.95!!! That is awful. If Obama was smart, which he is not, he would concentrate on on drilling for more oil here and lower the fuel prices especially diesel which is sky high and then the prices at the supermarket could be lowered. Here’s another thing, why do they think they can always raise the prices whenever they want? I can’t go into my boss’ office and ask for a raise everytime something go up, so why should they do it?

  11. What gets me with these left wing liberals is that they’re still blaming Bush and state that the economy was going down in the 2007 & 2008 and gas was $4 in 2008 which is true, but the democrats took control of the senate & congress in the 2006 elections which really have more control over the economy than the pres. does and in ’07 gas went to $3 a gallon and then in ’08 to $4 plus Obama had a super majority in both houses in his first 2 years in office and could’ve done something but he didn’t. So don’t go blaming Bush in 2012. That excuse is old.

  12. I went to the local Food Lion yesterday and bread was $3.00 a loaf, eggs were $2.50/doz. I overheard a lady looking at a bag of sugar and uttered a curse word, she saw me and apologized. I told her that I had the same thought. Gasoline around here is $3.50/gal.
    I wish I could find the good prices listed above.

    • Wow food prices high in your area! Bread same here, sugar & eggs higher yet not as high as yours. Gas though, at $3.62/gal. Sucks all around…

  13. gunnyginalaska

    STOP VOTING FOR DUMMYCRATS!

  14. the wars have caused all prices to rise. gas was around $1.10 when Bush came into office, now it is $3.68. Fresh tuna here in Hawaii was $4.99 a pound pre Bush and War on Terror, now it’s $12.99. $10′s of billions being given to Muslims and Israeli’s, while Americans are hurting.

    • “gas was around $1.10 when Bush came into office, now it is $3.68.”

      So convenient of you to leave out something in between “Bush came into office” and “now it is $3.68.” The something you left out is called BARACK HUSSEIN OBAMA.

    • Don’t forget the millions of taxpayer dollars Michelle spends on her vacations while Americans are hurting.

  15. Their tricks never cease to amaze me, like we’re too stupid to notice. The smaller sleeves of crackers and smaller bags of sugar and flour were some of the first things I saw. I use the Amish chicken base paste to make stock to cook with; one day they had literally cut the jar size in half at the same time they doubled the price. That was almost enough to push me over the edge, but it’s so good for cooking with. I figured, what else can they do. Imagine my surprise when, next time I bought it and pulled off the foil seal, they had only filled it a third full with paste. That’s it…I’m done with them.

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