OK, so I didn’t really pay 22¢ a gallon when I filled up at Costco in St. Louis Park last night.
The official, nominal price was $1.359 a gallon.
But, what economists call the real price, adjusted for inflation, was 22¢.
That’s because $1 today, adjusted for inflation, is the same as 16¢ in 1970.
P.S.: After taking into account credit card rebates and other incentives (like the 3¢/gallon discount offered to Costco credit card holders), 2016 gas prices are even lower.
