Quote:
Originally posted by fotze@Aug 18 2005, 01:27 PM
Why does the concept of inflation make sense to people for all commodities other than energy?
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Because for most commodities, the price isn't nearly as volatile as for gas. For most commodities, compounded inflation has been less than 100% over the last 10 years.
I've taken the introductory economics courses, but I won't claim to understand inflation. Still, it seems that inflation of gas prices has exceeded overall inflation over the last 10 years. Combine that with the non-competitive nature of the business, and you get some understandable cynicism about the reasons for the price increases.
As for "cheaper than water" -- Enmax charges approximately $0.94 for 1000 litres of water. Where are you getting your gas for cheaper than that?