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If the cost of gas after inflation is as stable as that graph suggests, then most of the large increase in gas prices in the past year -- from ~$2 to ~$3 -- is
by hirundo 5y ago
If the cost of gas after inflation is as stable as that graph suggests, then most of the large increase in gas prices in the past year -- from ~$2 to ~$3 -- is the result of inflation.
https://www.gasbuddy.com/charts https://www.gasbuddy.com/charts
A near 50% annual inflation rate? I sure hope not. Someone please tell me what's wrong with this graph or my interpretation.
- CrazyStat 5y agoThey're adjusting gasoline prices by a gasoline-specific index as their "inflation estimate". Basically dividing one average gasoline price by a slightly different average gasoline price. Unsurprisingly this results in a flat line.
- dragonwriter 5y ago> If the cost of gas after inflation is as stable as that graph suggests They are actually adjusting retail price of gas for the CPI component for gasoline. Which is a dumb thing to do: by definition that should be completely invariant, but it doesn't tell you anything except how well aligned the gas price average they are using is with thr one the BLS uses to calculate the CPI component for gasoline. For which the answer is “close, but not perfect”.