strange inflation distribution

Reader comment on: Per Se Pricing

Submitted by John Gillis (United States), Jan 12, 2016 17:26

It would be a valuable service to Americans if someone knowledgeable wrote an essay explaining this phenomenon. I have seen SOME industries have cumulative price increases over the past decade of 100%, 200%, etc. As evidenced in this case, many restaurants can pass along their inflation-caused staff and materials costs to their customer (and still get the customers). Similarly in most of the construction industry, prices grow inexorably year to year, and the cost of construction today vs. a decade ago is uniformly many times as much as the supposed inflation rate claimed by the Federal Reserve. So, clearly some industries have experienced inexorable inflation that is 5 or 10% per year, while some other fields have been held down to much smaller price increases, perhaps closer to the mythical 1 or 2% claims of the Fed.

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