Time to Eliminate Asphalt From the Price Index
So gasoline prices are back to $3.00 a gallon all around the country, and without a hurricane or a ruptured pipeline to blame. From Florida to the Carolinas to California to Rhode Island, the Great American Consumer is paying three bucks-plus for not-even-premium unleaded gasoline—and we’re still not in the summer peak driving season yet. But it’s not just what you’re putting in your car that’s going up, as consumers already know: it’s the price of the car and the price of the car’s own tires…and now it’s the asphalt underneath those tires, too.
This is a price list of performance-grade asphalt, Free-On-Board at New Haven, Connecticut:
Price/Ton 4/24/2006 $305.00 4/17/2006 $302.50 4/10/2006 $297.50 4/3/2006 $280.00 3/28/2006 $280.00 3/20/2006 $280.00 3/13/2006 $250.00 3/6/2006 $250.00
By my rudimentary calculations, that’s a 20% increase in the last two months. I suppose it’s time to eliminate asphalt from the adjusted inflation statistic: “Ex-Food, Energy, Tires, Houses, Insurance, Rent, Healthcare, Google Ad-Words, United Healthcare CEOs, and Asphalt.”
Jeff Matthews I Am Not Making This Up
© 2005 Jeff Matthews
The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews’ recommendations.