Food Prices Are Soaring Faster Than Inflation and Incomes • Hacker News Board

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#281

Post by dominotw » Mon, Mar 08, 2021, 2:34 PM UTC

bryanlarsen wrote: post #176

adflux wrote: post #17

Earlier quoted context omitted.

Sure, almost all central banks over the world have printed an astronomical amount of money. Even though they may state there is no significant inflation, I dont buy it and neither do many other economists. Stock prices, house prices and now, at last, commodity prices have gone through the roof... But you're probably earning about as much as you were a year ago, or less, if your industry was affected... It's not just…

Interest rates are at zero. When official inflation starts ticking up they'll raise interest rates which will deflate the stock & house price bubble and cut inflation off at the knees. We have lots of things to worry about -- inflation isn't one of them.

> We have lots of things to worry about -- inflation isn't one of them.

I really hate this comment. I am worried about not being able to ever being afford a house for my family. Avg income in my neighborhood is ~49k but a 2 bed condo here are selling for 450K and getting outbid by 75k over the asking price. Its insane.

Maybe you already own a house and are happy that prices are up. But its really weird to tell other ppl what they should be worried about.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#282

Post by bradleyjg » Mon, Mar 08, 2021, 2:36 PM UTC

evrydayhustling wrote: post #273

PragmaticPulp wrote: post #198

Earlier quoted context omitted.

From the article: > In the U.S., prices rose close to 3% in the year ending Jan. 2, according to NielsenIQ, roughly double the overall rate of inflation. The study found that food prices are rising faster than inflation. 3% is high, and 1.5% over inflation is also concerning, but I think a lot of people are jumping to conclusions based on the headline. Those inflation numbers would go unnoticed by most during normal…

Disagree that this is alarmism. The question is whether the way inflation is being measured matches the way we use it to make decisions. Graphs like AEI's Chart of the Century [1] have been highlighting for years that inflation numbers are inappropriately averaging decreasing costs for discretionary purchases, while costs for essentials like healthcare and education grow out of control. When food also starts outpacin…

Education and healthcare have pathological cost growth in large part because they aren’t subject to ordinary market pressures (the consumers are either over a barrel and can’t say no or aren’t paying in the first place). We need to fix them but it would be a mistake to let those pathologies drive monetary policy.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#283

Post by dwighttk » Mon, Mar 08, 2021, 2:36 PM UTC

KptMarchewa wrote: post #277

Wolfenstein98k wrote: post #191

Earlier quoted context omitted.

I agree. I may be being pedantic, but I think food prices are (or should be) the first and most important component of what we measure inflation with. It's much clearer to say "the rest of the basket hasn't risen above normal yet, but I am concerned the headline I quoted will mislead people who don't understand inflation.

Why? Food prices are usually few percent (6-18% in the western countries) of total household expenses. If you want to look at something that impacts people way more, look at rent or house prices.

Pretty sure (couldn’t read most of the article, paywall) this is talking about worldwide though. (First word of the article is “Global”)

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#284

Post by sandworm101 » Mon, Mar 08, 2021, 2:38 PM UTC

KptMarchewa wrote: post #277

Wolfenstein98k wrote: post #191

Earlier quoted context omitted.

I agree. I may be being pedantic, but I think food prices are (or should be) the first and most important component of what we measure inflation with. It's much clearer to say "the rest of the basket hasn't risen above normal yet, but I am concerned the headline I quoted will mislead people who don't understand inflation.

Why? Food prices are usually few percent (6-18% in the western countries) of total household expenses. If you want to look at something that impacts people way more, look at rent or house prices.

>> Food prices are usually few percent (6-18% in the western countries) of total household expenses.

Maybe for rich people. If you have an income of 2000/month, with the first 1000 or so going to rent, food is likely your second largest expense.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#285

Post by ben_w » Mon, Mar 08, 2021, 2:38 PM UTC

lottin wrote: post #228

sayakura wrote: post #204

Earlier quoted context omitted.

It is the inflation for the poorest population. What does it matter that 4k tv's are cheaper to people who spend all their money on necessities.

Call it a price rise. But it's not inflation. You don't get to re-define what economic concepts mean.

Would it not be fair to say that different subpopulations experience different effective inflation rates because they buy different things?

Seriously, would it? I’m not an economist. I am aware of RPI/CPI, and inflation is measured independently in different countries within the Eurozone, so it’s not like we can’t have multiple measures for different purposes or populations.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#286

Post by PragmaticPulp » Mon, Mar 08, 2021, 2:38 PM UTC

evrydayhustling wrote: post #273

PragmaticPulp wrote: post #198

Earlier quoted context omitted.

From the article: > In the U.S., prices rose close to 3% in the year ending Jan. 2, according to NielsenIQ, roughly double the overall rate of inflation. The study found that food prices are rising faster than inflation. 3% is high, and 1.5% over inflation is also concerning, but I think a lot of people are jumping to conclusions based on the headline. Those inflation numbers would go unnoticed by most during normal…

Disagree that this is alarmism. The question is whether the way inflation is being measured matches the way we use it to make decisions. Graphs like AEI's Chart of the Century [1] have been highlighting for years that inflation numbers are inappropriately averaging decreasing costs for discretionary purchases, while costs for essentials like healthcare and education grow out of control. When food also starts outpacin…

The food inflation number was isolated in the article to be around 3%.

Much of that increase can be traced back to increased shipping costs during COVID lockdown.

Monetary policy isn’t the only or even the primary driver of inflation. In this case, the inflation comes from increases demand on a portion of the food supply chain (shipping services).

The alarmism in the comment section largely comes from people misreading the headline. The article is about soaring food costs in developing nations, but the comment section is treating the headline as if it’s about US food prices.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#287

Post by base698 » Mon, Mar 08, 2021, 2:39 PM UTC

wtf_is_up wrote: post #223

Cthulhu_ wrote: post #157

Earlier quoted context omitted.

Common stock advice: if you hear about an investment opportunity, you've probably already missed out. Ex: Bitcoin stocks (yes they're stocks / investment products) are only really reported on when they're at an all-time high. They may go up a little more if you're reading something fresh off the press, but it's not going to go up as much as it already has. I mean if you bought a year ago you could have had a 10x retu…

Where can I find this Bitcoin corporation that issues stock?

$MSTR is one.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#288

Post by bradleyjg » Mon, Mar 08, 2021, 2:39 PM UTC

bfrog wrote: post #239

So housing and food has gone up dramatically, but still "inflation is low" is the story. Doesn't and hasn't passed the smell test in a decade.

1.8% (housing) and 3% (food) are dramatic increases to you?

You would not have liked the 80s.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#289

Post by [deleted] » Mon, Mar 08, 2021, 2:39 PM UTC

kache_ wrote: post #269

whoisninja wrote: post #237

CPI is a joke, they do something called hedonic adjustments to things like tech products etc. It's completely subjective and BS. Technology is deflationary, things should get cheaper because we go after producing them in creative ways one demand is high. CPI is absurd, it only perpetuates consumerism and punishes savers. We product 2x the food society consumes - mostly wasted away, just with some supply chain efficie…

Everyone knows CPI is not analogous to reality. Why would it be. Just look at house prices

[deleted]

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#290

Post by gher-shyu3i » Mon, Mar 08, 2021, 2:40 PM UTC

lottin wrote: post #246

gher-shyu3i wrote: post #241

Earlier quoted context omitted.

There shouldn't be a target. I don't want my money to be inflated artificially by the government.

Okay, then say you disagree with the target, but don't say they are incompetent.

Why? The very fact that they are engaging in usurious loans is a sign of incompetence. Who ends up paying for it? The hard working people trying to save money.