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A price of $2.29 and 9/10ths gives the individual the impression that they are only paying $2.29 per gallon when they are essentially paying $2.30- two insignificantly different prices that nonetheless make a world of difference when a customer is picking a gas station to fuel up at.ou see, pricing gas by the 9/10ths of a cent works a lot like when other stores sell items for prices ending with â.99â³. Shoppers place much greater emphasis on the first number in a price and tend to ignore the least significant digits.
Gold and Inflation â For those who argue that Gold is an inflation hedge all they have to do is look at the chart and they will see that it is not a perfect (or even imperfect) inflation hedge. Inflation Adjusted Gasoline Prices â In 1969 gasoline was only $0.35 a gallon. By 1976 it had risen to $0.60 per gallon. And by 1980 â 81 we were shocked as gas prices rose above $1.00 for the first time. In only 12 years gasoline had risen a full dollar from $0.35 to $1.35. That is an increase of 286% in 12 years! Because the overall value of the dollar has fallen, in order to compare the cost of gasoline over longer periods of time it is necessary to adjust the price for inflation.