Earlier quoted context omitted.
Beyond seasonal price fluctuations, wouldn't it be 1.04^12 = ~6% annually?
0.4% is 0.004, so 1.004^12 = 1.049... or 4.9%
Derp, yeah. Thanks.
US annual inflation declines to 7.7% in October vs. 7.9% expected
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Re: US annual inflation declines to 7.7% in October vs. 7.9% expected
#512MoM inflation is still unfortunately 0.4% which is about 5% annualized. I think it's unfortunate that reporting focuses around yearly inflation which isn't really useful for talking about inflation in the moment.
Interesting, that does seem like a more useful metric. Where do you find that data?
It's part of the whole BLS report, here:
https://www.bls.gov/news.release/cpi.nr0.htm
You may also be interested in what is referred to as "sticky CPI" which is reported by the Atlanta Fed: https://www.atlantafed.org/research/inflationproject/stickyp...
The name is fairly descriptive of what it is: the slowest re-acting elements of the CPI calculation. This is contrasted with the "flexible" CPI, which are the elements that react the fastest. In the last report, Sticky CPI was constant (no change), whereas all the decrease in CPI came in the flexible side of things.
Re: US annual inflation declines to 7.7% in October vs. 7.9% expected
#513Earlier quoted context omitted.
Of course they are. There was a much-watched video that went around a few weeks ago that composed quite a few CEOs talking about pushing the pricing envelope to take advantage of inflation news (effectively saying: "People now expect price increases, we can leverage that to our gain!"). https://www.youtube.com/watch?v=psYyiu9j1VI
That's literally how the market is supposed to work and it's not a bad thing. This is not some conspiracy. Companies price test all the time. They will increase the prices until either the consumer won't purchase their product or a competitor comes in and undercuts them. Sometimes the market conditions favor the consumer, sometimes they favor the company.
The problem is companies are so big and consolidated now that competitors can't as easily come in and existing competitors were bought out.
Re: US annual inflation declines to 7.7% in October vs. 7.9% expected
#514Earlier quoted context omitted.
Then buy generic. This is one way to fight inflation. Coke will get the message very quickly if their sales start coming down.
I bet some people are buying generic now, and Coke doesn't care, because they've done the math, and have decided that losing a few customers (perhaps only temporarily) is worth the extra revenue generated by the customers who keep buying Coke at the higher price.
Yep, americans aren't nearly as price conscious anymore in general, and there are just so many that are flush with cash now due to cheap money that they still don't care.
Re: US annual inflation declines to 7.7% in October vs. 7.9% expected
#515It's a bit higher in Denmark and I have a little too much stored as fiat in the bank. What is a safe asset to store value while inflation is >10% in a developed country?
Do you have inflation protected bonds? In the USA you can buy I-Bonds (max $10k/year per person) that pay interest at the current inflation rate. But what is considered “safe” really has a lot to do with your timeline. How soon do you want to access the money? If it’s in tears then index funds are likely a good buy today.
Poland offers something similar, but with a twist. On the plus side, the amount you can buy is unlimited. However, interest rate is fixed in the first year, at 7% (which is a far cry from 17.9% inflation). From the year two the interest rate is inflation rate + 1% premium. You can buy either 4 or 10 year bonds.
Re: US annual inflation declines to 7.7% in October vs. 7.9% expected
#516Earlier quoted context omitted.
> My grocery bills overall have definitely gone up, but that's because I stopped eating out and buy a lot more groceries. Wouldn't this make your bills go down?
>>My grocery bills overall have definitely gone up, but that's because I stopped eating out and buy a lot more groceries. >Wouldn't this make your bills go down? I'd imagine that when GP "eats out," they don't do so at the grocery store/supermarket. I know I don't. Usually I'll go to a restaurant. Which may make my overall food bills go up, but it certainly doesn't increase my grocery bills.
The few times I've eaten out at a grocery store has been at a Whole Foods. Their hot food bar and fresh pizza area is nice and they often have a small bar with seating available.
Re: US annual inflation declines to 7.7% in October vs. 7.9% expected
#517Earlier quoted context omitted.
I don’t think you understand how bonds work. However I do agree that yields will increase and this is temporary.
? You don't think I know how bonds work? Yet you agree with me?
> the "market", which is now controlled by AI reading newsprint
You might as well say "I don't understand how bonds work". It's fewer words.
Re: US annual inflation declines to 7.7% in October vs. 7.9% expected
#518Earlier quoted context omitted.
I haven’t been paying anything since non-penalized forbearance started. Why pay when interest is 0% and there’s no penalty for not paying? I’ve been using money that normally goes to loans for other bills. I imagine plenty of other people are buying more stuff with the money so i imagine it does contribute to inflation
> Why pay when interest is 0% and there’s no penalty for not paying? Just spitballing here… But maybe you should pay because you promised to pay it, the costs were borne by the vast majority of taxpayers who did not take out such loans, and because tradesmen and other perfectly deserving parties do not get access to such easy money?
It might hurt to spit ball a little bit harder here, but just so you know, penalty free forbearance is going to end very soon. And just like that all of us dirty debtors will begin repaying.
If the government wanted us to repay during this period it would not have automatically turned our payments off and told us multiple times it turned auto-debit off.
What kind of absolute fool would restart payment during a 0% interest penalty free forbearance? That’s having a loan that’s much less than the inflation rate. Why on earth except based on irrational internet principles would an individual restart payments on a loan like that? Very little spit balling went into that original comment..
Re: US annual inflation declines to 7.7% in October vs. 7.9% expected
#519Earlier quoted context omitted.
That's literally how the market is supposed to work and it's not a bad thing. This is not some conspiracy. Companies price test all the time. They will increase the prices until either the consumer won't purchase their product or a competitor comes in and undercuts them. Sometimes the market conditions favor the consumer, sometimes they favor the company.
The problem is companies are so big and consolidated now that competitors can't as easily come in and existing competitors were bought out.
I'm curious what keeps killing competition and incentivizing the growth of mega-corps over smaller companies?
Re: US annual inflation declines to 7.7% in October vs. 7.9% expected
#520Earlier quoted context omitted.
You thinking inflated away or a default? Because those who have bought treasury bills are expecting that money in a few years.
THere is nothing that says that we ever have to pay off the debt. Debt can, and has continued to accrue to this nation since its founding. It is middle school thinking that debt incurred today must be "paid by our children". It's just not at all how the national debt works...like at all.
Yes that middle school thinking is called “arithmetic“