U.S. annual inflation rate drops to 8.5% • Hacker News Board

Re: U.S. annual inflation rate drops to 8.5%

#181

Post by jmacd » Wed, Aug 10, 2022, 1:55 PM UTC

phkahler wrote: post #42

post_break wrote: post #36

Good news I guess. But my electricity price literally doubled. My house insurance is up 30%. My gas bill is up by a lot. Have you seen the price of oreos? The $5 box at Taco Bell is my splurge and I'm trying to cut back on everything I can.

A Sausage McMuffin and a coke used to cost $2.12 at most locations near me two years ago. Today it varies from $2.95 up to $3.85 (strangely this high value is in Detroit proper where income is lowest vs the burbs). I notice this price varies even at the same locations sometimes, but it's WAY up in general by a solid 50 percent in 2 years.

That is less about inflation and more about pricing power. An Egg McMuffin is a low-grade foodstuff in one community (probably higher income), but a "treat" or extravagant breakfast in another (probably low income). The Egg McMuffin has far more pricing power in Detroit than it does on Rodeo Drive.

This happens with things like Medium Ground Beef as well. But T-bone steaks can be quite cheap in lower income areas, and massively overpriced in more expensive parts of town.

Re: U.S. annual inflation rate drops to 8.5%

#182

Post by bluedino » Wed, Aug 10, 2022, 1:56 PM UTC

bombcar wrote: post #147

judge2020 wrote: post #49

Earlier quoted context omitted.

For my closest McD’s it’s still $1 for a large soft drink at least (I know some franchises have the ability to change the cost of a large nowadays), but it is $2.49 for a sausage McMuffin.

The weirdest thing I've discovered is that the app doesn't show you certain discounts (but you still get them) - there's often a BOGO discount on the sausage McMuffin (the only true McMuffin, all you egg McMuffin eaters can gtfo) where the second is a dollar (or sometimes even free!) but nothing tells you this until you add a second one to the order. The McDonalds app is the weirdest mish-mash of modern app design wi…

They just brought the 2 for $5 breakfast sandwich deal back. They've had the "buy one sausage muffin/biscuit or hashbrown and get another for a dollar", though.

Re: U.S. annual inflation rate drops to 8.5%

#183

Post by mminer237 » Wed, Aug 10, 2022, 1:57 PM UTC

roflyear wrote: post #128

krzyk wrote: post #114

Earlier quoted context omitted.

I wonder, is solar popular in Texas? From my vague memories it is quite sunny there.

[flagged]

That's not true. 73% of Republican want more solar farms and 62% want more wind farms: https://www.pewresearch.org/fact-tank/2021/06/08/most-americ...

This also tracks with my experience. I know tons of conservative people who are leasing their farms out to build windmills or installing their own solar panels.

Re: U.S. annual inflation rate drops to 8.5%

#184

Post by meragrin_ » Wed, Aug 10, 2022, 1:57 PM UTC

ChrisLomont wrote: post #72

post_break wrote: post #36

Good news I guess. But my electricity price literally doubled. My house insurance is up 30%. My gas bill is up by a lot. Have you seen the price of oreos? The $5 box at Taco Bell is my splurge and I'm trying to cut back on everything I can.

>But my electricity price literally doubled. What supplier and location, out of curiosity?

Probably any supplier using natural gas.

Re: U.S. annual inflation rate drops to 8.5%

#185

Post by bombcar » Wed, Aug 10, 2022, 1:57 PM UTC

mercy_dude wrote: post #47

300bps wrote: post #8

Energy prices down 4.6% Gasoline prices down 7.7% Food prices up 1.1% Shelter prices up 0.5% So the minor overall reduction was by far gasoline.

How much of this is due to the release of oil reserve?

Probably actually very little - the amounts released aren't much compared to consumption; the price of gas fluctuates even under normal conditions due to large numbers of factors.

It's likely the price shot up and overshot what it "should be" (assuming such perfect price exists) and now it's settling down. The question is where the new normal will be.

Re: U.S. annual inflation rate drops to 8.5%

#186

Post by bluedino » Wed, Aug 10, 2022, 1:57 PM UTC

bombcar wrote: post #156

jrochkind1 wrote: post #142

Earlier quoted context omitted.

Kind of a side issue, but I too have noticed that Taco Bell has gone from one of the cheapest fast food places, to actually being more expensive than other fast food options. This started before the pandemic/recent economic weirdness, but perhaps has become even more so.

I've noticed that too, though you can maybe still escape with the $5 box for now. Amusingly the "Dominos Coupon pizza" has stayed constant through all this, whereas everything else around here has gone up - high enough that the difference between going to Culver's or going to the bar or an actual restaurant is basically nil again.

All the decent Papa Johns e-coupons went away. I used to be able to get a large 1 topping pizza at either place for $7 using the app, now it's only Domino's

Re: U.S. annual inflation rate drops to 8.5%

#187

Post by randomdata » Wed, Aug 10, 2022, 1:58 PM UTC

radioactivist wrote: post #97

So the year over year CPI increase each month this year (starting from January) was 7.5%, 7.9%, 8.5%, 8.3%, 8.6%, 9.1%, 8.5%. So this value has been jumping around a bit as it has been going up. This drop is being taken as good news -- but I worry whether this is really a meaningful drop or whether we are just over interpreting what could be a fundamentally noisy metric?

Corn seems to be a good leading indicator here[1]. Cash bids were $4 in 2019, $5 in 2020, $6 in 2021, $7 at the start of 2022, $9 when the war in Ukraine broke out, down to $8 in June, and now at $7.50 where it has remained stable at since the beginning of July. Which suggests that things are indeed slowing.

[1] Which likely ends up being a proxy for oil, but as a farmer I watch food commodities much more closely.

Re: U.S. annual inflation rate drops to 8.5%

#188

Post by fuoqi » Wed, Aug 10, 2022, 1:58 PM UTC

elicash wrote: post #107

phkahler wrote: post #46

Earlier quoted context omitted.

Stagflation was last handled in the late 70s. The solution is to keep jacking rates up. We need mortgages at least 10 percent ;-) I'm assuming your comment was sarcastic. The expansion of the last 40 years has followed rather continual rate cuts which can't go past zero. We need to reset to higher rates and convince each administration not to cut rates to stimulate the economy but instead fix some things and stop ins…

Hard to say we're seeing stagflation with current job numbers. It might happen, especially with the Fed being willing to increase rates, but it's not evident that's where we're at right now.

Remember that companies are really reluctant to part with already hired personnel. And that when recession-induced layoffs start they often look like an avalanche. We already can see the first trickles with the tech companies and it takes 9-12 months for rate changes to influence the economy fully.

Re: U.S. annual inflation rate drops to 8.5%

#189

Post by post_break » Wed, Aug 10, 2022, 1:58 PM UTC

brianwawok wrote: post #129

post_break wrote: post #105

Earlier quoted context omitted.

Because it stings. 2019 I paid $1400 for insurance for my home, this past June I paid $2200. Same home, no massive improvements, just pay more.

Did you shop it? Many house insurance companies give you a 10-50% new client discount, that slowly goes away year by year. The only choice is to jump ships every few years.

I have an insurance agent who shops it to every carrier. I jump around every year but it doesn't help too much because the insurance for the insurance companies are tightening their belts.

Re: U.S. annual inflation rate drops to 8.5%

#190

Post by creaghpatr » Wed, Aug 10, 2022, 1:59 PM UTC

mynameishere wrote: post #167

creaghpatr wrote: post #144

Earlier quoted context omitted.

Soft drinks are a loss leader for fast food, which is why judging McDos on the price of a single item like soda or mcmuffin is a bit oversimplified. Pricing strategy fluctuates (sometimes) independently of supply costs.

Ha ha, no. That's where the money is. They have like 90 percent margins on those syrup/water mixes. ... I like discussions about inflation though because everyone brings up a particular item from their own budget. For instance, have you priced Little Debbie Zebra Cake Rolls lately? Did you even know they exist? It's like a mixture of a Swiss Roll and a Zebra Cake and they are completely awesome and I'm pretty sure th…

>They have like 90 percent margins on those syrup/water mixes.

Wait, nevermind you're right about that.