Well, they finally got what they wanted. Inflation, more inflation!
2.6% is not particularly high. In Jan 2020 it was 2.5%, and in May 2018 to August 2018 it was a range of 2.7% to 2.9%.
Consumer prices increase 2.6 percent
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Re: Consumer prices increase 2.6 percent
#22This seems inline with what the fed wanted/expected. They are considering this transitionairy inflation, which is temporary, so don't expect this to affect borrowing rates or bond buying. At least not yet.
Re: Consumer prices increase 2.6 percent
#23Some non-CPI items like cars (new and used) and basic commodities like lumber have grown a lot more than 2.6%. Correction: CPI does include new and used car prices, after a lot of adjustments, at 3.7% and 2.5%, respectively. It's important to note though that the median cost of cars sold has grown much faster than the CPI car numbers. This is because the BLS tries to account for car quality, so even though you're pay…
Cars are included in the CPI. Don't spread FUD.
Re: Consumer prices increase 2.6 percent
#24Anyone who has been to a supermarket in the last 12 months knows that the 2.6 percent increase in consumer prices is observably not true. I buy the same basket of the generic products ( chicken quarters, produce, beef, eggs, bacon, dairy products ) . Compared to this time in 2020 I'm spending at least 20% more. People who buy processed food(s) are spending at least 30% more.
While we are dealing in anecdotes, I buy mostly processed foods and I can only think of a single food item I regularly purchase that has seen a price increase, and that was small and due to a change in the grocery store's suppliers. In fact, I have been seeing more sales recently on items I would purchase anyway which I think has dropped my food costs a bit.
Re: Consumer prices increase 2.6 percent
#25Some non-CPI items like cars (new and used) and basic commodities like lumber have grown a lot more than 2.6%. Correction: CPI does include new and used car prices, after a lot of adjustments, at 3.7% and 2.5%, respectively. It's important to note though that the median cost of cars sold has grown much faster than the CPI car numbers. This is because the BLS tries to account for car quality, so even though you're pay…
Yeah 2x4's are literally 4x what they were just over a year ago. And I couldn't find an architect to help me with my house this spring at any price.
Lumber is so expensive now, I fear it's going to worsen the housing shortage and increase the cost of existing homes.
I know a small developer trying to build townhouses and he's unable to source the lumber needed at any price.
Re: Consumer prices increase 2.6 percent
#26Looking at the chart 2.6 percent seem quite average, so what’s the big news?
Re: Consumer prices increase 2.6 percent
#27Earlier quoted context omitted.
Somehow everyone seems has this experience, rents have continued to climb at a high rate for the last decade, and they manage to downplay this in statistics.
The "basket of goods" they use to measure inflation is purposefully gamed to under represent purchases everyone makes weekly that are "volatile". But good news is that DVD players are cheaper than ever so inflation must be low!
Fuel, which isn't purchased as often since the pandemic started has maintained its CPI weighting and has gone down dramatically however.
Inflation is one of those things where if it's clearly stated as being extremely high can risk a lot of followon effects as everyone divests themselves of any direct monetary assets.
Re: Consumer prices increase 2.6 percent
#28Earlier quoted context omitted.
Somehow everyone seems has this experience, rents have continued to climb at a high rate for the last decade, and they manage to downplay this in statistics.
The "basket of goods" they use to measure inflation is purposefully gamed to under represent purchases everyone makes weekly that are "volatile". But good news is that DVD players are cheaper than ever so inflation must be low!
Care to cite evidence of this conspiracy?
Re: Consumer prices increase 2.6 percent
#29Looking at the chart 2.6 percent seem quite average, so what’s the big news?
Well the prices I see around me are up a lot more than 2.6%.
My latest sticker shock was at Lowe's.-
Re: Consumer prices increase 2.6 percent
#30It does make for a somber website visit, when one frequents the Chapwood Index and starts contemplating about all of it including the consequences for the poorest of the poor, who are trapped: https://www.reddit.com/r/PersonalFinanceCanada/comments/kr1k... (the original site seems to be down at the moment)