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Monday, May 28, 2007

Inflation Adjusted Gas Prices

This chart, from , shows the inflation adjusted average annual gas price since the 1920's. What is interesting is the general downward trend since 1920 in the inflation adjusted price, with the exception of the oil embargo of the 1970's and the recent run-up. If the current bump smooths out, according to this trend line we should land somewhere between $2.00/gal in a few years. Or so I hope!


Anonymous said...

OT _

CITGO's Milka I. Dunno IRL debut a few weeks ago:

The crew chief had to keep reminding her over the radio to keep her foot into the throttle.

A "Naval Engineer" with Master's Degrees in Organizational Development, Naval Architecture, Aquaculture and Maritime Business - earning the last three degrees simultaneously.

Funny part, can't find any reference to the name of this universite' anywhere. I wonder that in the 66 laps it took her to crash out whether she gained a few more degrees.

CITGO CEO's comments in March say it all:
"Again, CITGO is a company in the United States that represents many, many things, but more than the people think about what kind of a company is CITGO. CITGO is not only the company for making money, CITGO is a company that they need to show even more (indiscernible) in this kind of event, involved in human performance, too. More important, a new CITGO (indiscernible) a new performance in the United States."

CITGO: More indiscernible than ever

Juan Vasquez said...

This graph is bogus. How many cars did we have per capita in 1918? Hmm did oil companies have economies of scale? Umm no.

Anonymous said...

Every time gas prices surge automotive/economic "pundits" bring up the difference in what we are paying for gas and what we would pay if inflation was accounted for in gas prices. This is the lamest argument ever! This is a typical misuse of data. These "experts" ignore how little wages have adjusted to meet rising inflation throughout the nation. I guess they forgot about it. They also conveniently leave out the immense increases in cost of living in the country over their data period. Oops, maybe that was a mistake too. It seems to me that those who really don't understand statistical analysis or how to apply it, shouldn't make broad generalizations or draw unfounded conclusions that concern what going on in this country. Bottom line: this article/graph and the conclusions associated with them are incorrect and incomplete. You cannot correctly and conclusively determine that gas prices are lower than inflation without also including a myriad of other factors that affect the outcome of the study. Come on this is Statistical Analysis 101!

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