Interesting accounting

uscitizen

uscitizen

Villified User
I find it interesting that gasoline sales figure into retail sales figures, but are excluded from inflation figures.
 
But gas counts to boost retail sales when the price goes up making the economy look better and does not count agains inflation. If it is so fungible it should not count in either.
 
uscitizen said:
But gas counts to boost retail sales when the price goes up making the economy look better and does not count agains inflation. If it is so fungible it should not count in either.
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Nah, all of the fungibles count in retail sales. The price of gas is a contributor to inflation anyway in delivery costs, etc. The fungibles effect inflation but are not counted directly because of that.
 
Damocles said:
Nah, all of the fungibles count in retail sales. The price of gas is a contributor to inflation anyway in delivery costs, etc. The fungibles effect inflation but are not counted directly because of that.
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what other fungibles are there out there that contribute to retail sales and not cost of living?
 
Care4all said:
what other fungibles are there out there that contribute to retail sales and not cost of living?
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Cost of Living is different than inflation. You are working two different reports. Gasoline is figured into the cost of living. There is also more than one Cost of Living report as it is not the same nationwide.
 
and what does it being a fungible have to do with it NOT being counted with its price rises causing a cost of living hike?

please explain why it should not, so i can understand!

thanks,
care
 
Care4all said:
and what does it being a fungible have to do with it NOT being counted with its price rises causing a cost of living hike?

please explain why it should not, so i can understand!

thanks,
care
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It's not that it is fungible, it is that it contributes to the cost of items (delivery costs) and it is counted as a contributor in that arena.
 
All direct energy costs are attributed the same, Care. The "others" are each of those. The cost of electricity and manufacture increase the costs, this is attributable to direct energy costs. Since the increase is attributed to the increase in those items their effect on inflation is always factored in. Just at the front rather than the back end.
 
Actually, gasoline would have lowered our inflation rate for a long time. Gasoline, if it rose at the same level of inflation, at the price of the 70s would be over 7/gallon. The assumption, first of all, would be that it would have negatively impacted our inflation rates other than on a temporary basis.

Gasoline is factored into cost of living, as well as energy, but it is not factored in at the end of inflation as it is factored in at the front end. It causes the prices to rise (delivery and direct energy costs).
 
BTW, there are many economic schools of thought on this, many argue that the Direct Cost of Energy should be accounted for on both ends. I just think it artificially inflates the measure of items.
 
uscitizen said:
But not counting it in certain areas also manipulates the data.
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Right, the data is kept consistent by counting it only on the front end. The cost of items rises with the cost of gasoline, manufacture, etc. It is therefore counted and the data remains more reliable.

This data has been collected in this established method for decades, giving us a reliable and direct correlation. Changing it would only be a change for appearance, not effect and would render previously collected data moot.
 
As gasoline prices rose this year the official inflation was far lower than the real out of pocket inflation for consumers. But the retail sales figures looked great! ;)
 
I am curious how the data collection methods have changed over the decades. I know some methods were changed during Regans time in office.
 
Damocles said:
Right, the data is kept consistent by counting it only on the front end. The cost of items rises with the cost of gasoline, manufacture, etc. It is therefore counted and the data remains more reliable.

This data has been collected in this established method for decades, giving us a reliable and direct correlation. Changing it would only be a change for appearance, not effect and would render previously collected data moot.
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I can understand what you are saying Damo for the prices of goods rising with the hikes in transporting their goods.

But Gasoline is also used by near every working person out there, ON ITS OWN...THIS should be included in inflation prices.

they are leaving out what it COSTS US to drive and to heat our homes by doing it the way they do, RIGHT?

Where do gas prices that we pay to drive get calculated in to inflation?
 
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