I was looking at my recipts today and was noticing some strange things. First that the general cost of things here in Atlanta are rising. This is not due to the summer (it is over). Gas prices are the highest that they have been in a while. 1.09 to 1.15 a gallon for cheap gas. This summer it was .98 to 1.04 and you could find it cheaper. Dr.Pepper has gone from .89 to 1.09 a 20oz bottle in the past month alone. I have recently quit smoking because a pack of cigs went up to over 3.00. Beer went up 1.00 in the past month.

I have not been following economics lately but this seems strange to me. Are companies trying to make as much money as they can before the new year or am I being too paranoid and reading too much into all of this. If they are why? If they are not then is the vicious market that controls soft drinks responsible?

Please let me know what you think.

-- dragoneyez (dragoneyez@mindspring.com), September 14, 1999

Answers

Oil price increases are reflecting a combination of OPEC production restrictions and the fact that both Japan and the US are increasing their strategic oil reserves. Not sure if other countries are also stockpiling oil.

John

-- John Hunt (jhhunt@magma.ca), September 14, 1999.

Despite a continuing statement for a number of years that we have no inflation, prices continue to rise. I don't understand it, but I see that prices go up...

-- Mara Wayne (MaraWayne@aol.com), September 14, 1999.

Here are a couple of links from earlier this year about increased oil stockpiling in Japan and the US.....

Japan has taken other steps as well, such as stockpiling a half- year's supply of oil

http://www.foxnews.com/scitech/background/y2k/y2k051499.sml

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Oil Flowing Into Strategic Petroleum Reserve For First Time in Five Years

http://home.doe.gov/news/releases99/maypr/pr99109.htm

-- John (jhhunt@magma.ca), September 14, 1999.

Curiously, the gas prices here in NM are dropping. Last week we were paying 1.28 a gallon for regular unleaded. This week I am seeing 1.19 - 1.23... Also a lot of the grocery stores in the area are offering 2- liter cokes for 3/1.00...

head tilted questioningly...

The Dog

-- Dog (Desert Dog@-sand.com), September 15, 1999.

Oil prices are rising because OPEC is holding the line---an outcome which is EXTREMELY inconsistent with their previous attempts to raise the price of oil by curtailing production. Some producers always cheated, producing more than their quotas, and oil prices eased.

Nothing beats the telecoms for price inflation, even as they are advertising "lower" rates on TV. I just got a notice from ATT that in-state toll charges ["local long distance" (what an oxymoron!!)] would be "adjusted" by 200% - 300%!!!! Other fees were also "adjusted" upwards by double or triple digit per- centages.

Yes, folks, good old inflation is alive and well and living in the U.S. of A.!!! Doesn't that make your heart swell with patriotic pride?

-- Y2K Pioneer (Pioneer@aol.com), September 15, 1999.