Gas Prices--1932 Versus Mid-May 2005

GDT::MAT082::Bit:: Cheap Gas Along Route 66 in Illinois we found a gas station from 1932 where the price of gas of $0.277.

The output from two "inflation calculators" indicated that $0.277 in 1932 is approximately worth $3.37 to $3.95 in 2005.

On 13 May 2005, the cheapest gas in Scottsdale as reported by PhoenixGasPrices.com was $2.29. It appears as though gas prices today are "cheap" when compared to gas prices in 1932. [How do we define cheap?]

Exercises

1. Compute the average of the results given by "inflation calculators."

2. Compute what percent lower today's gas prices are when compared to the inflation calculated gas price of $3.37.

3. Find a third inflation calculator and get a third data point using a start-year of 1932 and an end-year of 2005. Record the median of the three gas prices obtained from the inflation calculators.

External Inflation Calculators

• WestEgg.com:: Inflation Calculator
• BLS.gov:: Inflation Calculator

Creator: Gerald D. Thurman [gdt@deru.com]
Created: 12 May 2005


This work is licensed under a Creative Commons License.

Gas Prices--How are Gas Prices Determined