- In February of 1974, wheat reached a high of $6.45 perbushel, which based on the CPI is $29.85 per bushel intoday’s dollars. Based on the way NIA calculates real priceinflation, by eliminating geometric weighting and hedonics,wheat’s real inflation adjusted high in February of 1974 was$97.37 per bushel. NIA expects wheat to reach new inflationadjusted highs this decade and if so, the average price fora 24 oz loaf of the cheapest store brand of wheat bread inyour grocery store will likely rise to around $23.05.
- The median U.S. home is currently worth $171,700 or6,550 ounces of silver. After the inflationary crisis of the1970s, the median U.S. home declined to below 1,000ounces of silver. NIA believes that because this decade’sReal Estate bubble was so large, Real Estate prices willlikely overcorrect to the downside and the median U.S.home will be worth only 500 ounces of silver at some pointthis decade. Therefore, if you buy just $13,000 worth ofphysical silver today, NIA believes you will be able to paycash (without any mortgage) for an average American homewithin the next 5 to 10 years.
- In November of 1974, sugar reached a high of $0.65 perpound, which based on the CPI is$2.757 per pound in today’sdollars. Based on the wayNIA calculates real priceinflation, by eliminatinggeometric weightingand hedonics, sugar’s realinflation adjusted high inNovember of 1974 was$8.99 per pound. NIAexpects sugar to reach newinflation adjusted highs thisdecade and if so, the averageprice for a 32 oz packageof Domino Granulated Sugar in yourgrocery store will likely rise to around $62.21.
- In November of 1977, orangejuice reached a high of $2.20 perpound, which based on the CPI is$7.76 per pound in today’s dollars.Based on the way NIA calculatesreal price inflation, by eliminatinggeometric weighting and hedonics,orange juice’s real inflationadjusted high in November of 1977was $25.33 per pound. NIA expectsorange juice to reach new inflationadjusted highs this decade and if so,the average price for a 64 fl oz containerof Minute Maid 100% Pure Squeezed Orange Juice inyour grocery store will likely rise to around $45.71.
Quotes, thoughts, opinions and timeline stamps for the "right edge" of the sheet of paper that is time... we never know what is on the other side of the right edge after all...
Thursday, November 11, 2010
National Inflation Association Estimates. Highlights. Read if you believe inflation is 4%
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