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

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

#271

Post by propogandist » Wed, Aug 10, 2022, 2:25 PM UTC

fuoqi wrote: post #172

How easy this value can be verified? In other words, do we have all inputs public and the algorithm (with all its "hedonistic adjustments") is fully accessible? Can we track changes in the algorithm? Even with the effect of high base, I am getting increasingly suspicious of official numbers (same with the unemployment statistics). Energy costs have skyrocketed and they get into almost everything an economy produces.…

the govt changed the way CPI metric was calculated in January 2022 to mask some of the inflation

https://twitter.com/truflation/status/1557349186466627586

https://youtube.com/watch?v=cb7oI8Hs16g

http://www.shadowstats.com/alternate_data/inflation-charts

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

#272

Post by scythe » Wed, Aug 10, 2022, 2:25 PM UTC

pojzon wrote: post #180

rootusrootus wrote: post #161

Earlier quoted context omitted.

Seems like EV uptake rate, while still just a fraction of total sales, is probably high enough to contribute to demand destruction. Gas prices have come down pretty fast. I wonder if EV adoption goes fast enough that we'll see a period of time when gas prices just crater for a while. A sweet spot of owning an ICE vehicle, but then gas stations will start to close up and ICEV owners could face the same problem EV owne…

When ppl talk about EVs overtaking petrol all I can do is shake head. Infrastructure is not there and is not going to be there for EVs for a long time. Its not only gas stations but also power plants, transit cables, personel, supply chains, technology, laws and other. If we make good investments it will take around 50 years in some developed EU countries to reach appropriate infrastructure levels. In less developed…

>it will take around 50 years

That would be twice as long as it took the US to electrify 90% of farm houses.

https://en.wikipedia.org/wiki/Rural_Electrification_Act

>Speaker of the House Sam Rayburn was a major proponent of the REA, which he helped pass in 1936 as Chairman of the House Interstate and Foreign Commerce Committee. Rayburn stated in 1959 that ninety percent of farm homes in the U.S. were electrified, compared to three percent in the early 1930s.

Furthermore, electrifying gas stations along major highways will obviously be much easier than electrifying farms scattered around everywhere.

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

#273

Post by caseysoftware » Wed, Aug 10, 2022, 2:26 PM UTC

krzyk wrote: post #114

post_break wrote: post #92

Earlier quoted context omitted.

My previous plan was 8c per kWh, it's now 16c per kWh. I live in Texas where you shop for rates. Before you're quick to crap on comments give a little benefit of the doubt.

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

Yes, Texas is the #1 producer of solar (by far) and #2 for wind.

I had solar installed on our house last year - just before supply chain issues got really bad - and so far this summer, it's generated enough to power our house every day. Of course, not every circuit is connected to it though, so I get to deal with the bs of "net billing" but the capacity is there.

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

#274

Post by lettergram » Wed, Aug 10, 2022, 2:26 PM UTC

Balero wrote: post #210

lettergram wrote: post #131

Earlier quoted context omitted.

The inflation on food due to high fuel and fertilizer prices won’t really kick in until October -> February during harvest. Next year food will be far higher, largely due to - people skipping fertilizer a second year in a row - the feed price increases from year prior will impact next years meat - much of the cow herds have been reduced due to hay prices skyrocketing (but beef rates staying far lower, due to sell off…

>- if Ukraine doesn’t surrender, we can expect less food production and potential oil disruption to center Europe If Russia doesn't surrender. Don't put the responsibility of global food prices on the people being repressed and killed in their own homes. Do it on the aggressors and war criminals.

Lol I’m not “placing blame”

I’m stating what I see as facts. Russia will not surrender. The longer the Ukraine is in the war, the higher likelihood the people of Ukraine starve.

We can make an argument that they shouldn’t surrender. That’s a moral position.

I’m pointing out if we don’t figure it out within the next few months you’re not going to get the food from the region, as people are fighting over it. I don’t care who’s fault it is. We should recognize the situation so we can try to mitigate the issue.

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

#275

Post by bigodbiel » Wed, Aug 10, 2022, 2:26 PM UTC

fuoqi wrote: post #214

lettergram wrote: post #131

Earlier quoted context omitted.

The inflation on food due to high fuel and fertilizer prices won’t really kick in until October -> February during harvest. Next year food will be far higher, largely due to - people skipping fertilizer a second year in a row - the feed price increases from year prior will impact next years meat - much of the cow herds have been reduced due to hay prices skyrocketing (but beef rates staying far lower, due to sell off…

>Russia is not likely to renew trade relationships baring a reparations for seizing assets Russia is quite ready to sell on the following conditions: - Remove sanctions which forbid (or make it difficult) the Russian export in the first place. - Pay in rubles (i.e. you have to "sterilize" your cache through the Moscow stock exchange) like was done with the gas export to Europe. - Remove sanctions which forbid export…

Russian foreign reserve assets are liquid, nationalized means of production for goods outside their respective chain of production isn’t and of dubious value (eg car manufacturing).

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

#276

Post by Sohcahtoa82 » Wed, Aug 10, 2022, 2:26 PM UTC

roenxi wrote: post #178

shmatt wrote: post #48

Earlier quoted context omitted.

Quoted post unavailable.

1) Greed isn't a variable here - McDonalds today can't be more greedy than McDonalds in 2020. McDonalds in 2020 was already capped out as far as greed goes. They have been the poster child for corporate greed for decades. If greed could make prices go up they'd have been selling $3 burgers back in 1950. 2) If prices go up by 50% without an increase in costs, profit should go up by much more than 50% and share prices…

> They have been the poster child for corporate greed for decades.

I would give that title to Walmart and EA Games.

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

#277

Post by snarf21 » Wed, Aug 10, 2022, 2:26 PM UTC

gus_massa wrote: post #91

snarf21 wrote: post #56

Earlier quoted context omitted.

Which makes sense because all other things in the CPI use oil to make and distribute goods. I've stopped paying attention to inflation numbers because they are all lies. The current CPI basket is complete nonsense. The numbers are built in such a way to always have low inflation unless oil prices go way up. Before this recent spike, inflation was "at historic lows and near zero". Really? Things aren't any more expens…

Perhaps I misunderstood your comment, but note that "at historic lows and near zero" means that the prices in 2022 are very similar to the prices in 2021, not that the prices went back to the old values in 2019.

Of course, but there are lots of years where the inflation number was almost zero and even one year where it was negative. My allegation is that the basket is nonsense. For example, public college tuition (one of the major expenses for families) went up 250% net from 2000 to 2020 where as the CPI was up 50% net over the same time period. I think healthcare, housing, college, transportation, etc. aren't weighted into the CPI appropriately.

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

#278

Post by cheschire » Wed, Aug 10, 2022, 2:27 PM UTC

roenxi wrote: post #178

shmatt wrote: post #48

Earlier quoted context omitted.

Quoted post unavailable.

1) Greed isn't a variable here - McDonalds today can't be more greedy than McDonalds in 2020. McDonalds in 2020 was already capped out as far as greed goes. They have been the poster child for corporate greed for decades. If greed could make prices go up they'd have been selling $3 burgers back in 1950. 2) If prices go up by 50% without an increase in costs, profit should go up by much more than 50% and share prices…

Why would you pick the situation that is clearly impossible when we're talking about inflation? Of course costs have increased.

If prices go up by 50%, and then you subtract the increase in cost, then any measure over 0 is potentially a greed-driven number.

It seems unlikely that zero companies are riding the wave of inflation acceptance in the population. At least some companies must be increasing their costs because most people aren't willing to check the math.

That isn't always greed related, sure, and some companies may be hedging against further cost increases on their end, and some may be using the increased profits to recover from COVID losses. But still, saying greed isn't a variable, as you did, seems a bit naive. Or am I missing some greater economic concept?

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

#279

Post by gambiting » Wed, Aug 10, 2022, 2:27 PM UTC

devin wrote: post #122

gambiting wrote: post #102

Earlier quoted context omitted.

My gas(for heating, not petrol) has literally just gone up 600%. You look at these numbers posted in the media and you think "what are they on about? What 8.5%?".

From what to what? I don't know if you're talking about a 600% increase of a tiny number or what.

£0.03/kWh to £0.18/kWh.

Yes the number overall is tiny - but it still means that whatever I used to spend on heating/hot water, is now 6x higher.

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

#280

Post by fleddr » Wed, Aug 10, 2022, 2:27 PM UTC

propogandist wrote: post #233

HelloMcFly wrote: post #192

Earlier quoted context omitted.

I'm not trying to be glib or intentionally controversial, but: is this a "market correction" for beef not really being as sustainable at recent consumption levels? Is it a bad thing if beef becomes significantly more expensive?

They’re pushing all kind of narratives to make cattle seem like they’re terrible for the world, and linking everything to climate change. No one wants to accept the push to start eating bugs. Don’t give into the WEF propaganda https://www.theguardian.com/environment/2021/mar/18/cows-sea...

You should stop reading right wing conspiracy twitter.