Mysterious inflation in Pittsburgh
A fare increase "in line with inflation" is likely Jan. 1 in any event, he said.
Inflation? The financial world is so screwed up these days that you have some people hoping for inflation. I just have to wonder, does anyone at the Port Authority read the financial news? Inflation is virtually nonexistent of late. Officially, inflation in all of 2008 was 0.1%. * Note the decimal point. So an increase 'in line with inflation' of PAT's $2 base fare would go up to $2.01. If you look at PAT's disproportionate fuel costs there is rampant deflation. Wholesale diesel costs are down like 66% from their peak last year and down significantly from their year ago prices. Even if they think that statement applies to their capital expenditures, by most accounts construction costs are falling as well. Most of that decrease in fuel prices across the board have yet to work their way through the supply chain as best I read.. so nothing about to change real soon.
Gonna have to have the PR folks come up with a better explanation than that if they want to raise fares. That or else riders might hold Bland to that promise and expect fares to be lowered next year if deflation shows up as some expect.
* I'm giving that the benefit of the doubt. The seasonally adjusted All Urban Consumers CPI is actually down year over year in December. But by any metric you choose, inflation in the last quarter of 2008 was more like deflation at a double digit annualized rate.