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

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

#311

Post by leppr » Wed, Aug 10, 2022, 2:37 PM UTC

dmix wrote: post #291

Given all of the COVID money, trillion dollar spending bills, supply chain issues, etc have been building up over the last few years, why does inflation ramp up suddenly all at once? Shouldn't it be more gradual? https://static01.nyt.com/images/2022/08/09/business/inflatio... It this just purely gas prices? Or does the market just play along as if everything is good then freak out all at once?

COVID money also came with lockdowns, which reduced spending and thus delayed inflation. It also naturally takes time for inflation to travel from assets to commodities to consumer goods.

Furthermore there was no justification for raising prices other than "there's now a lot more money floating around, it's a free market baby".

Citizens wouldn't accept that, especially as most of them didn't get much richer from COVID money (mostly only asset owners did). But they can accept inflation when it's "caused" by a war instigated by a foreign dictator villain.

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

#312

Post by jollyllama » Wed, Aug 10, 2022, 2:38 PM UTC

soupfordummies wrote: post #193

Some random things I've noticed in my personal experience during the last few weeks that are inflated at way above 8.5%: Gasoline (gallon) - 3.00 last summer, 3.75 today (25% increase) Towing a Car (~50mi Round Trip) - 125 last summer, 350 today. (180% increase!) Bag of Dorito's - 4.50 last summer, 6 today (33% increase) Can of Spray Paint - 4.25 last Summer, 6.50 today (54% increase)

It's so much worse if you compare it to ten or fifteen years ago. Or even five.

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

#313

Post by Kye » Wed, Aug 10, 2022, 2:38 PM UTC

silent_cal wrote: post #296

Kye wrote: post #134

Earlier quoted context omitted.

CPI is like GDP CPI collects certain things some people have decided represent the economy as experienced by ordinary people. How well it works in general and for your experience in particular depends on the choice of items in the basket and how well they match your reality. edit: There's a Planet Money series on GDP. I wouldn't be surprised to see a follow-up on CPI soon.

Except that they are constantly changing the basket to be a basket of cheaper goods. It's pretty bold to be so open about it, but that's what they do - it's manipulated.

Your "except" creates anticipation for disagreement, but you seem to be agreeing with me aside from the claim about manipulation. I didn't say it was accurate.

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

#314

Post by fleddr » Wed, Aug 10, 2022, 2:39 PM UTC

dmix wrote: post #291

Given all of the COVID money, trillion dollar spending bills, supply chain issues, etc have been building up over the last few years, why does inflation ramp up suddenly all at once? Shouldn't it be more gradual? https://static01.nyt.com/images/2022/08/09/business/inflatio... It this just purely gas prices? Or does the market just play along as if everything is good then freak out all at once?

All the war-related supply issues are sudden, not building up over the last years.

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

#315

Post by jupp0r » Wed, Aug 10, 2022, 2:39 PM UTC

pojzon wrote: post #269

ericd wrote: post #216

Earlier quoted context omitted.

Oh, not this again. If you have a standard household outlet accessible where you park, you probably don’t need charging stations outside of road trips, because you’ll be getting 60+ miles of charge overnight. The load at a given time is like a third that of a central air conditioner. I think we can handle it.

Please talk to any energy technician working on national grid. We have troubles generating enough power to not force blackouts in EU and we talk about introducing hundreds of millions of EVs / to every household. Currently it all works only because they are a novelity.

Build wind, solar and grid batteries, then. Nothing magically hard about it. The grid itself will need updates too.

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

#316

Post by golergka » Wed, Aug 10, 2022, 2:39 PM UTC

shmatt wrote: post #48

phkahler wrote: post #42

Earlier quoted context omitted.

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.

Quoted post unavailable.

I don't get people like you. You're saying that on one hand, McDonald's raises prices unreasonably high because they are greedy. But on the other hand, you're saying that other corporations are not eating up McDonald's market share with lower prices because... why? Because those other corporations are not greedy, and just want to help McDonalds out?

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

#317

Post by mmaurizi » Wed, Aug 10, 2022, 2:39 PM UTC

wing-_-nuts wrote: post #284

ericd wrote: post #216

Earlier quoted context omitted.

Oh, not this again. If you have a standard household outlet accessible where you park, you probably don’t need charging stations outside of road trips, because you’ll be getting 60+ miles of charge overnight. The load at a given time is like a third that of a central air conditioner. I think we can handle it.

And for those of us in apartments / condos? My HOA were all born in the 40s and think EVs are simply a fad that doesn't need supporting.

What about where you park at work? Or when grocery shopping? There are more options for 240v "slow" chargers than you'd think.

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

#318

Post by throwaway0a5e » Wed, Aug 10, 2022, 2:39 PM UTC

bombcar wrote: post #165

donatj wrote: post #146

What are the actual metrics they use to measure inflation? My electric bill is 33% higher than previous years, my gas bill is similar. City/Water/Sewer doubled. Trips to the grocery store are up close to 20%, and gasoline doubled. Everything you actually purchase day-to-day is up far more than the inflation benchmarks, so much so it’s beginning to feel like propaganda. I overnight went from thinking “I make good mone…

There's no way to do "the main inflation number" and make everyone happy - because they have to try to find some way to include housing, and that either drags it way up or way down relative to how you "feel". If all other prices double, but you own or have fixed rent, you're going to feel it but the numbers will be muted; if all prices stay the same but your rent doubles, you're still going to feel it but the numbers…

>There's no way to do "the main inflation number" and make everyone happy

Not making everybody happy would be one thing. But it sure looks a lot like the main inflation number isn't making ANYBODY happy.

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

#319

Post by jupp0r » Wed, Aug 10, 2022, 2:40 PM UTC

wing-_-nuts wrote: post #284

ericd wrote: post #216

Earlier quoted context omitted.

Oh, not this again. If you have a standard household outlet accessible where you park, you probably don’t need charging stations outside of road trips, because you’ll be getting 60+ miles of charge overnight. The load at a given time is like a third that of a central air conditioner. I think we can handle it.

And for those of us in apartments / condos? My HOA were all born in the 40s and think EVs are simply a fad that doesn't need supporting.

In CA, they aren’t given the option to deny you to install a charger. Easy legislative fix.

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

#320

Post by Enginerrrd » Wed, Aug 10, 2022, 2:40 PM UTC

jdhn wrote: post #166

Let's say that CPI drops even quicker than it went up due to a combo of rate hikes working, demand destruction, and supply chains clearing up. What would the Fed do in that case?

Potentially end up with significant asset deflation. This is actually a big concern of mine.

We were in a definite asset bubble to begin with, so some correction was expected. But I'm concerned the fed's levers against inflation are slow ones and that we could see a real deflationary economy coming up here.

The economy has been fast to fall and slow to recover, so the fed is, IMO, in danger of overshooting their soft landing significantly.