Dollar index disguises global inflation threat – USA Gold

Dollar index disguises global inflation threat – USA Gold

A simple gut check will tell you that this is a consistent theme across nearly all goods and services, not just what’s listed here.  On average, the items charted above are 45% more expensive than they were in January 2005, with gasoline costing double.  So, in just seven years, the dollar has lost about one-third of its spending power, its practical value, when measured against some of the most common goods purchased by the average family.  On a side note, food and energy are the two components specifically excluded from core CPI as they are said to be ‘too volatile’, offering some insight into how incomplete core CPI figures are as a practical measure of inflation.