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US inflation means families are spending $709 more per month than two years ago

cnn.com

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Re: US inflation means families are spending $709 more per month than two years ago

#21

Post by xenospn »

silisili wrote: post #10
candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

Same. I make decent money and used to save thousands per month. Now I'm lucky to stash away high hundreds a month, but any expense like new brakes wipes that out. I wonder how in the world everyone else is getting by. Maybe we're all just smiling and pretending here...

I live alone and just realized I’ve been spending $1300/month this year on groceries. For one person.

Re: US inflation means families are spending $709 more per month than two years ago

#22

Post by qbasic_forever »

paulpauper wrote: post #8
candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

wages have gone up too

Not nearly as much as inflation. Groceries alone are up something like 40% in the last 2-3 years. Your and everyone else's wages have not risen that fast on the whole.

Re: US inflation means families are spending $709 more per month than two years ago

#24

Post by coffeebeqn »

paulpauper wrote: post #8
candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

wages have gone up too

Have they? My last raise was 4%. Looking at job postings upgrading my salary looks difficult

Re: US inflation means families are spending $709 more per month than two years ago

#25

Post by TuringNYC »

I feel blessed to work in Tech, where -- however bad the economy is -- most of us dont face absolute deprivation as those in some other industries.

That said, basic expectations of things growing up are just unreachable for many. My parents lived much more comfortable lives than I do. My grandparents even more so.

Recall how food inflation was a major suspected cause of the Arab Spring (https://www.pbs.org/newshour/world/world-july-dec11-food_09-...).

US leaders should be careful. People get upset when they have nothing to feed their children. I hope we solve these problems with sensible fiscal and monetary policy.

Re: US inflation means families are spending $709 more per month than two years ago

#26

Post by gruez »

qbasic_forever wrote: post #16
candiddevmike wrote: post #4

As a parent with kids, I really don't know how folks are getting by with the prices of everything. I know folks who keep eating out, buying new vehicles, and even building new houses and I'm left scratching my head wondering how they afford all of this. I'm not saving nearly as much as I was years ago and I think my "lifestyle" has decreased post COVID (few vacations, eating out is a treat, gifts are for birthdays/ho…

There is a _LOT_ of debt being added, household debt is up to something like 17 trillion dollars from like under 10 trillion pre pandemic. IMHO vehicles are huge drivers of debt. There are almost no cars under $30k now, and the average sale price of new cars is pushing up near $50k. This is for bog standard stuff like Hondas and Fords, not luxury cars. Used cars are incredibly expensive too. People are financing cars…

>IMHO vehicles are huge drivers of debt. There are almost no cars under $30k now, and the average sale price of new cars is pushing up near $50k. This is for bog standard stuff like Hondas and Fords, not luxury cars.

I went on toyota.com and a base level corolla is only selling for $22,795. This includes a "Delivery, Processing & Handling" charge of $1,095. If for whatever reason you think that driving a compact car is beneath you, you can have a mid sized car (toyota camary) for only $27,515.

Re: US inflation means families are spending $709 more per month than two years ago

#27

Post by paulcole »

itake wrote: post #15
01100011 wrote: post #7

Earlier quoted context omitted.

I don't know how most people are doing it. For me it's because the asset bubble has inflated my stock income. I suspect a lot of folks who owned homes, stocks and other assets are feeling the wealth effect. For the rest of society, I don't know why they're not in the streets with pitchforks.

> my stock income My investment portfolio profits (or RSU vests or bonuses) never make their way to my checking account. Are people really dipping into their investment accounts to cover living costs? Maybe for home or car purchases?

Your investment portfolio profits will make it into your checking account at some point right? Otherwise why bother? Maybe this person has reached that point.

Re: US inflation means families are spending $709 more per month than two years ago

#28

Post by supernova87a »

I think a big problem, especially with companies, is that as soon as any cost of some input touches a new price level, that price now starts to get baked into the planning. Even if it was only for a very short blip, and even if the actual average costs later go down. It gets very sticky, but only in the up direction.

Have you talked to any kind of building work contractor, insurance company, etc. lately? They've all jacked up their prices just because their supply prices touched a certain level and now they have to plan for it. And to be sure, some of them are using the cover of inflation to test how willing people are to pay more.

Inflation really is a vicious cycle. And I don't think we've in recent memory seen prices actually decrease after an inflationary cycle. Do things pegged with CPI even allow for negative inflation?

Re: US inflation means families are spending $709 more per month than two years ago

#29

Post by maxlamb »

itake wrote: post #15
01100011 wrote: post #7

Earlier quoted context omitted.

I don't know how most people are doing it. For me it's because the asset bubble has inflated my stock income. I suspect a lot of folks who owned homes, stocks and other assets are feeling the wealth effect. For the rest of society, I don't know why they're not in the streets with pitchforks.

> my stock income My investment portfolio profits (or RSU vests or bonuses) never make their way to my checking account. Are people really dipping into their investment accounts to cover living costs? Maybe for home or car purchases?

Just saw an article about that a few days ago: https://fortune.com/2023/08/09/401k-hardship-distribution-bo...

Re: US inflation means families are spending $709 more per month than two years ago

#30

Post by sylens »

gruez wrote: post #26
qbasic_forever wrote: post #16

Earlier quoted context omitted.

There is a _LOT_ of debt being added, household debt is up to something like 17 trillion dollars from like under 10 trillion pre pandemic. IMHO vehicles are huge drivers of debt. There are almost no cars under $30k now, and the average sale price of new cars is pushing up near $50k. This is for bog standard stuff like Hondas and Fords, not luxury cars. Used cars are incredibly expensive too. People are financing cars…

>IMHO vehicles are huge drivers of debt. There are almost no cars under $30k now, and the average sale price of new cars is pushing up near $50k. This is for bog standard stuff like Hondas and Fords, not luxury cars. I went on toyota.com and a base level corolla is only selling for $22,795. This includes a "Delivery, Processing & Handling" charge of $1,095. If for whatever reason you think that driving a compact car…

Exactly. It’s the SUVs and trucks that are suffering runaway prices. Driving a new Camry or Honda Accord is still doable
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