Inflation-Adjusted Gas Prices Lower Than in 1980
Kurt Brouwer October 16th, 2008
This is an interesting chart in that it illustrates the inflation-adjusted price for a gallon of since 1980.
Source: Carpe Diem
On a related note, we all remember that, earlier this year, the news was full of stories about the inevitable trend towards higher and higher gas prices. Yet now, gasoline prices are falling and from this chart we can see that we are paying the same cost for gas that we were paying 28 years, once inflation has been factored in. Actually, our gas bills are probably lower because cars generally have better mileage today than they did back then.
The fact that one ‘inevitable’ trend has turned around so dramatically should give us a little pause as we read the daily dose of negative news on the financial markets and the economy. If the trend towards higher and higher energy prices was wrong, is it possible that the drumbeat of negative news on finance is also overdone?
- Business , Economy , Geopolitics , Personal Finance , inflation
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They are referring to the “trend” not the absolute movements. If you look at the chart you will see there were corre ctions in 2002, 2006, and 2007 back to where the price was before the spike but the overall trend is still up.