Why does it not always add up?. What is Inflation? Definition Inflation is a sustained increase in the general level of prices for goods and services.

InflationWhy does it not always add up?

What is Inflation?Definition

Inflation is a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.

In other wordsWhat cost you $100 in 2000Cost you $125.26 according to the Bureau of

Labor Statistics

Cost from then to now This is the price of a

Ford Coupe in 1926$520 How much would

this car cost today? Bureau of Labor Stat

istics Inflation rate Calculator

$6,336.74

Cost from now to thenFord Coupe 2010$20,995 - $35,995What would this cost

in 1926?Bureau of Labor Stat

istics Inflation rate Calculator

$1,722.87 - $2,953.79

Why such a difference?The coupe back then a lower model?

Cost from then to nowIn 1921 the Cadillac

touring model cost$3940How much would

this cost today?Bureau of Labor Stat

istics Inflation rate Calculator

$48,013.02

Cost from now to thenCadillac touring

model 2009$36,560 - $58,575How much would

this cost in 1921?http://

www.bls.gov/data/inflation_calculator.htm

$3,034.05 - $4,861.04

The Comparison Then NowFord Coupe 1926

$520Ford Coupe 2010

$1,722 - $1,953Cadillac 1921

$3940Cadillac 2009

$36,560 - $58,575

Ford Coupe 1926$6,336

Ford Coupe 2010$20,995 - $35,995

Cadillac 1921$48,013.02

Cadillac 2009$36,560 - $58,575

Why the difference? Why is there a difference with the Ford but

the Cadillac is closer to the same?

Cost from then to nowBuick Touring Car

Model-D 1921 $650.00 http://www.bls.gov/d

ata/inflation_calculator.htm

$7,832.43

Cost from now to thenBuick LaCrosse

2010$27,085 - $33,015http://

www.bls.gov/data/inflation_calculator.htm

$2,247.74 - $2,739.86

Why the difference?Again there is a big difference why?

Comparable?

Comparable?Hudson Coach 1926 Kia Soul 2009Cost then

$1,165Cost now

$14,196.74

Cost then$1,093.87 - $1,390.94

Cost now$13,300 - $16,950

Does this transcend other areas?

Assignment Options Research Paper Research ProjectExplain why vehicle

prices have exceeded the inflation rate. 3 page minium

Take a given 10 year period and chart the price trends for 6 items over that period. And graph the trend to determine future prices.

Research project ExampleYear Bread Milk Gas House Income Car

1930 1 $0.08 $0.56 $0.25 $7,146 $1,612 $5251931 2 $0.08 $0.50 $0.25 $6,796 $1,527 $530

1932 3 $0.07 $0.43 $0.18 $6,515 $1,431 $540

1933 4 $0.07 $0.41 $0.18 $5,759 $1,409 $550

1934 5 $0.08 $0.45 $0.19 $5,972 $1,506 $575

1935 6 $0.08 $0.47 $0.19 $6,296 $1,594 $580

1936 7 $0.08 $0.48 $0.19 $6,145 $1,672 $610

1937 8 $0.09 $0.50 $0.20 $6,622 $1,789 $675

1938 9 $0.09 $0.50 $0.20 $6,420 $1,808 $7101939 10 $0.08 $0.49 $0.19 $6,146 $1,837 $750

0.15

0.17

0.19

0.21

0.23

0.25

0.27

1930

1931

1932

1933

1934

1935

1936

1937

1938

1939

Co

st

Year

Average Cost of a Gallon of Gas

Standard Deviation High

Line of Best Fit

Standard Deviation Low

Actual Cost

Any Questoins?