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Consumer prices increase 2.6 percent

bls.gov

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Re: Consumer prices increase 2.6 percent

#61

Post by henriquez »

drewcon wrote: post #50
henriquez wrote: post #34

Earlier quoted context omitted.

CPI is rigged in the sense that it is one attribute that status quo-apologists trot out to say “nothing to see here” when the real cost of goods is observably higher for all but the ultra-wealthy. “It’s not hyperinflation, it’s just that everything you conceivably want to buy is coincidentally much more expensive, because [reasons].”

“The real cost of goods is observably higher”? I don’t get how anecdotal evidence trumps repeatedly buying and measuring the cost of a vast cross section of products everyday people consume? Help me understand the conspiracy here? Who is doing the rigging and how?

The Fed and U.S. government are rigging our economic system to backdoor tax the middle class while gaslighting all of us into thinking that this is normal.

You don’t print $10T and handwave away millennia of basic economic principles.

Help me understand how CPI is not a joke with respect to how it’s used to say “this is normal.”

Everything I’m interested in spending money on, new hires for my company, real estate, cars, computer hardware, food, lumber, gas. All of this is coincidentally more expensive sometimes by a factor of more than 2x from two years ago? Nope, not buying it.

Re: Consumer prices increase 2.6 percent

#64

Post by DylanBohlender »

a-posteriori wrote: post #52
frankbreetz wrote: post #22

This 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.

Is the inflation rate transitory or is the price level fluctuation transitory? Makes a big difference...

The inflation rate is transitory. Price levels won't come back down unless we get transitory deflation of equal (or greater) magnitude.

Re: Consumer prices increase 2.6 percent

#65

Post by midasuni »

Bancakes wrote: post #16
drewcon wrote: post #6

Earlier quoted context omitted.

Good thing CPI isn’t calculated using anecdotal evidence from “anyone who has been to the supermarket”. Learn more about the calculation here: https://www.bls.gov/news.release/archives/cpi_04132021.htm

It's a fallacy to hand wave anecdotal evidence.

Anecdotally I’m spending less than I was last year in every category.

Re: Consumer prices increase 2.6 percent

#66

Post by fumar »

notyourday wrote: post #3

Anyone 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.

No idea why this is downvoted. Our groceries and staple household items have increased at least 10% over the last year.

Re: Consumer prices increase 2.6 percent

#67

Post by splithalf »

ardit33 wrote: post #8
notyourday wrote: post #3

Anyone 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.

Since I cook meat often, I kept track of the Trader Joe's meats from early 2020, to know Flank steak went from $8.99/lb to $12/lb NY Strip, from $10.99 to $14.99 Fillet Mignon from $18.99 to $24.99 Chick has gone up the same. For many food items, inflation is 10% - 15% or more

Consider fake meat. A veggie burger used to cost a buck or so. Compare that to today’s beyond beef which is almost beyond beef in price. Hedonic adjustments in everything.

Re: Consumer prices increase 2.6 percent

#68

Post by dhritzkiv »

JohnJamesRambo wrote: post #29
sonium wrote: post #26

Looking 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.- https://imgur.com/a/9UoXNdk

For anyone else wondering, like I was, this is a photo of copper wiring. I'm guessing thick gauge (6AWG) for dealing with high amperage. Not sure what the /3 signifies.

Re: Consumer prices increase 2.6 percent

#69

Post by cableshaft »

loosescrews wrote: post #24
notyourday wrote: post #3

Anyone 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.

Processed/packaged food/goods has another trick where they give you less but it seems like the same amount, and charge you the same, so you don't notice it as much. I bet you a lot of those things you're buying you're actually getting less than you were 1-2 years ago. They reduce the number of toilet roll sheets by 30-40, or the ounces in the package go down 3-4 oz, or they give you 1 less hot dog.

Here's a site that tracks the downsizing (I've also seen it called 'Shrinkflation'), and there are a lot of examples on the site. I'm sure you'll find something (probably multiple somethings) you buy on there that got downsized in the last year or two.

https://www.mouseprint.org/category/downsiz/

The top one on there shows they reduced Dorito's bags from 9 3/4 oz to 9 1/4 oz....sneaky sneaky!

Re: Consumer prices increase 2.6 percent

#70

Post by MontyCarloHall »

ensignavenger wrote: post #54
zaptheimpaler wrote: post #35

Earlier quoted context omitted.

https://www.epsilontheory.com/im-trying-to-understand-hedoni... "A Honda Accord cost $12,000 in 1990 and it costs $25,000 now. A Mustang was $9,000 and now it’s $27,000. The BLS has new car prices close to unchanged over the past 30 years." Whatever you think of the validity of "hedonic adjustments", this is certainly not what I would expect when BLS reports car prices as unchanged during that period.

The Honda Accord of 1990 is a different class of vehicle than the Honda Accord of 2021. In 2021, there are other entry level vehicles that can be purchased for much less than an Accord.

Indeed. A 2021 Accord is far superior to a 1990 Rolls Royce or other ultraluxury car in terms of amenities, engine power, quietness, build quality, etc.

That’s not even mentioning the leaps and bounds in efficiency and safety. I’d argue cars have gotten effectively cheaper over the years, as they’ve dramatically improved in every respect. If you could still buy a 1990 Accord manufactured today, it would probably sell for a couple thousand dollars.

Edit: as for the Mustang example in the grandparent post, that $27,000 Mustang of today outperforms entry-level Ferraris of 1990. A fully-spec’d $80,000 Mustang of today would outperform every Ferrari from 1990, including the F40, which sold for $400,000 in 1990 dollars (~$800k in today’s dollars).

So if anything, the CPI doesn’t implement hedonic adjustments enough for cars.

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