What has happened this year is true, gasoline prices from their highs have come down, oil prices are down from their highs. Also corn, wheat and soybeans are down. Agricultural commodities are nearing a low. They wont stay at these levels for very long.
The fact is this simply. You take oil, its at $92 today its still up substantially from the level it was at 1999 where it was at $12. Food prices are way up. Everything is more expensive.
Now there are different ways to measure inflation. The BLS calculates its own way and other people have different ways where they show the cost of living of average family is much higher. One thing is very clear, consumption in the US by historical standards has not recovered much. Why ?
The purchasing power of people, they get their salaries, compensation, and
their cost of living has gone up more than their salaries. They are getting squeezed. That's why retailing is not doing particularly well.
Now I admit in the US and elsewhere we have a dual economy, we have the economy of the rich, they live in San Francisco, in New Port Beach, Aspen, Palm Beach, Mayfair in London, Chelsea and so forth, and then we have the economy of the average person, its a very different thing but the rich will get creamed one day specially in Europe with wealth taxes.
