Question

For homework, Go to the store, and get current prices for items listed below..( I know the CPI index is for 2014 and we are in 2015, but we are going to call it "close enough.") Then you will be able to determine if there has been inflation for that particular good. Simply put your prices and year in the bookmarked inflation calculator and it does the work for you.

For example, in 1963 an Easy Bake Oven cost $15.95. Adjusting for the rate of inflation since 1963, an Easy Bake Oven should have cost $117.92 in 2011. However the oven only cost of $39.95 in 2011. Therefore there was no inflation for Easy Bake Ovens.

In 1964 a 21 inch television sold for $479.95. Adjusting for the rate of inflation since 1964, a similar TV should cost $3502.55. However a 21 TV can be bought today for $149.99. Therefore there has been no inflation for TV's!

Submit your price comparisons and conclusions in LEO-specualte as to why some items show inflation and others do not.

http://www.usinflationcalculator.com/ website to calculate CPI

SELECTED PRICES

1945          GAS $.21 GALLON

1945          EGGS $.55 DOZEN

1945          BULOVA WATCH $24.75

1945          BALLPOINT PEN $12.50

1955          REFRIGERATOR $259.00

1955          GAS $.29 GALLON

1963          EASY BAKE OVEN $15.95

1964         WOMEN’S DENIM PANTS $4.97

1972          GAS $.36 GALLON

1978          WESSON OIL 48 OZ. $1.39

1978         EGGS $1.67 DOZEN

1978         RED BAND FLOUR $.69

1978         RC COLA 64 OZ. $.83

1978         CANTALOUPE $.59

1981          GAS $1.38 GALLON

1988          RENT ONE BEDROOM APARTMENT $350.00

1998          GAS $1.03 GALLON

2000        LEMONS $.50 EACH

2000         BANANAS $.48 POUND

2000         RED GRAPES $2.50 POUND

2000          GALLON GENERIC BRAND MILK $2.24

2009         DOVE 8 PACK SOAP $6.98

Answer 1

Time ITEM CURRENT PRICE CURRENT PRICE(CPI) STATUS

1945          GAS $.21 GALLON $2.38 $2.86 NO INFLATION

1945          EGGS $.55 DOZEN $1.68 $7.49 NO INFLATION

1945          BULOVA WATCH $24.75 $291.98 $337 NO INFLATION

1945          BALLPOINT PEN $12.50 -- $170.22

1955          REFRIGERATOR $259.00 $1000 $2,368.88 NO INFLATION

1955          GAS $.29 GALLON $2.38      $2.65 NO INFLATION

1963          EASY BAKE OVEN $15.95 $129.99 $127.77 INFLATION

1964         WOMEN’S DENIM PANTS $4.97 -- $39.30

1972          GAS $.36 GALLON    $2.38        $2.11   INFLATION   

1978          WESSON OIL 48 OZ. $1.39 $2.73 $12.71 NO INFLATION

1978         EGGS $1.67 DOZEN $1.68    $5.23 NO INFLATION

1978         RED BAND FLOUR $.69 -- $2.59

1978         RC COLA 64 OZ. $.83 --- $3.12

1978         CANTALOUPE $.59 $3.99 $2.22 INFLATION

1981          GAS $1.38 GALLON    $2.38      $3.72 NO INFLATION

1988          RENT ONE BEDROOM

APARTMENT $350.00 $470 $725.21 NO INFLATION

1998          GAS $1.03 GALLON $2.38      $1.55    INFLATION

2000        LEMONS $.50 EACH $.74 $0.71 INFLATION

2000         BANANAS $.48 POUND $.58 $0.68 NO INFLATION

2000         RED GRAPES $2.50 POUND $2.88 $3.56 NO INFLATION

2000          GALLON GENERIC BRAND

MILK $2.24 $3.16 $3.19 NO INFLATION

2009         DOVE 8 PACK SOAP $6.98 $9.39 $9.94 NO INFLATION