In my last post, I opened up a discussion about the potential for a large problem with inflation. The prevailing wisdom out there is that it won't be a problem until next year and in 2011. Here is a wake up call for you. Did you notice that the cost of a gallon of gasoline has gone up? Hey, what happened? Wasn't it only $2.10 for premium not too long ago?
Some people follow this but some don't. The cost for a barrel of oil was really low not too long ago. I recall it hitting in the $30 range recently. This week, that cost was running around $70 per barrel as a lot of investors are flocking to commodities and think China is recovering. Here is where all of this hits you in the pocket. The cost for a gallon of gasoline (at the wholesale level) in mid-February was $1.15. Now that cost has ballooned to $2.05. Where I live I am paying $2.65 for premium. 60 cents is paying for transportation, taxes and other fees just to get the gas to my pump. Inflation is here if you only look. Since its Friday, I'll keep this post brief. Keep an eye out for those prices!
Stay tuned, my next post will continue this discussion and move into other rising costs.
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