When you hear or read the statistic about inflation in the U.S., it is really the CORE inflation. What that means is that it is the U. S. inflation rate, based on a basket of goodies dreamed up by the government, without food and energy.

Think about a couple of things: 

  • How does the government know that their basket of goodies is the same as ours? (It isn't!!!)
  • Who doesn't eat or put gasoline in their car?

 So why is the statistic without food and energy so relevant? I really don't know the answer to that question. The basket has never seemed to parallel the stuff I buy anyway, even if food and energy are included.

While we're used to seeing gasoine prices fluctuate and we see the volatility in our electricity or gas bill if we haven't signed a long-term contract, sometimes, however, food prices aren't that apparent. With the recession many retailers, including restauants, have realized they can't push higher prices because their customers won't pay for it.

Recently, through a friend of mine, Rebecca, I have discovered a great restaruant. It's Sweet Tomatoes. It's a lot like Souper Salad, but with more variety, and I think fresher ingredients. There're only two that I know of within 15 or 20 miles of my home, but I like them very much, so it's worth the trip. Additionally, like Super Salad, it's all you can eat, which I'm always a fan of. I'm a member of their club, Club Veg, and they send out a coupon every week that has specials on it.

The coupon is good for a variety of choices, the one I ususally choose is the dinner. It used to be $7.99 for dinner. Last week the coupon went up to $8.29. Okay, so it's only 30 cents, but that's still almost 4%. The target for inflation is only 2%, so that's double what the US Fed would like inflation to be.

What do you think will be the next target for an increase?