for an eye opener, go to one of the online calculators and compare today's price to prices in the early 80's with the $ being adjusted for inflation....not that big of a difference.
for example, a $2.00 item in 1980 would cost the following in 2007, based solely on inflation:
$5.03 using the Consumer Price Index
$4.43 using the GDP deflator
$6.23 using the value of consumer bundle *
$4.92 using the unskilled wage *
$7.48 using the nominal GDP per capita
$9.92 using the relative share of GDP
* The 2007 data for unskilled wage and consumer bundle are estimated and will be adjusted when official data become available.
under that idea, if gas was $2.00 a gallon then (sorry, I don't recall how much it was in 1980, but used $2), then even here in super-expensive California my $4.40/gal is cheaper in real dollars than it was in 1980.