[Ayoob]

I have a problem with the inflation charts. What is it supposed to mean that gasoline prices are the same today as they were in 1970, "relative to inflation?" It looks as though we have approximately the same price today that we did in 2000 when you factor in inflation.

What does it mean that prices are the same relative to inflation?

IMO, that measure is without much weight.

If my income rose at the same rate that prices increased, then I'd say that inflation is a useful metric. We'd be able to see that things were relatively stable with regards to my life. However, I don't see this economic recovery being the same as previous economic recoveries. The US is shedding jobs to an infinite job sink overseas, so we're not seeing upward wage pressure, so if prices go up they just go up and that's it for that.

It's almost as if we assume that wages are rising with prices.

IMO, it's better to go to source material and see what it is that the chartmaker was intending to show along with the source material that he used to produce his chart.

For example, I'd like to see the price of gasoline on that chart priced in dollars, euros, yen, renmibi, etc. Without the inflation number. Then, on a separate graph, average wages for the countries represented by those currencies. I think that would be a more meaningful graphic to look at.