Tuesday, August 14, 2007
McClatchy reveals something that people living from paycheck to paycheck have already figured out. Inflation is taking a big bite out of earnings. One always hears about core inflation, or inflation minus the volatile energy and food sector. People don't stop buying food or filling their cars with gas just because the numbers we often hear don't include those numbers.
If you say that computers and digital cameras are cheaper therefore inflation is in check, it doesn't really help those who are not in the market economically to buy those things. The cost of eggs has risen 19.5% in the past year. Milk is up 13.3%. Whole chickens are up 10%.
If you did not get much of a raise the past year and are making $30,000 a year, these prices are shrinking your paycheck by quite a bit. On the bright side, you can get a great deal on a computer.