These are the times I feel dumb for not being a homeowner (despite technically being able to afford it, just didn't want to get locked down in an area for 8+ years to make the rent vs buy math work out, though at these rates of inflation the math would turn around much quicker).
U.S. annual inflation rate drops to 8.5%
111–120 of 918 posts
Re: U.S. annual inflation rate drops to 8.5%
#112Hope the news is true, and not some creative-accounting ;)
Re: U.S. annual inflation rate drops to 8.5%
#113Whats the goal? At what inflation rate will the Fed be happy with?
2%, but knowing this administration, it's quite likely that they just change the calculation to something that prints 2% regardless of what inflation is at the moment. For example, based on the pre-1990s CPI calculation, inflation is currently at around 12%. No government's changes to the CPI calculation ever result in a larger inflation number, only lower!
well luckily, it's not the administration that decides the calculation method, the the BLS, and their method is also pretty transparent (https://www.bls.gov/opub/hom/cpi/calculation.htm) . Whether you agree with the method is one thing, but that method isn't just changed to suit a political purpose. And if you should so choose, you can look thru the historical methods and changes made, and form your own opinion (https://www.bls.gov/opub/hom/cpi/history.htm).
Re: U.S. annual inflation rate drops to 8.5%
#114Earlier quoted context omitted.
Quoted post unavailable.
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.
Re: U.S. annual inflation rate drops to 8.5%
#115Good 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.
> My house insurance is up 30% Everything seems to be going up, but interesting that you brought home insurance up? Any particular reason why you mention it? I guess if house prices and building material and labor costs are increasing, it makes sense that insurance would too. (Although I'm sure if everything dropped, insurance would remain the same)
Re: U.S. annual inflation rate drops to 8.5%
#116These inflation numbers, as I assume other flagged posts have already pointed out, are extremely misleading. Does anyone really think that housing, food, gas, or any other major consumer expense has only risen 8.5% since a year ago?
I guess TV's are cheaper (and 'better'), so they use that double-plus-goodness to bring down the headline inflation figure. Nevermind you can't eat your TV (which now has ads, by the way) or ride it to work. You could burn it to cook on and heat yourself, I suppose.
Re: U.S. annual inflation rate drops to 8.5%
#117Good 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.
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%?".
If 100% of the average consumer budget was spent on heating gas, a 600% increase of heating gas would be a 600% inflation boost.
At the end of the day, we each have our own inflation #. Some may be lower, some higher.
NYT made a calc to try and show some of this: https://www.nytimes.com/interactive/2022/05/08/business/econ...
(In fact, one question is "do you heat your home with oil", and a Yes answer seems to jump your score up 3% or so)
Re: U.S. annual inflation rate drops to 8.5%
#118Whats the goal? At what inflation rate will the Fed be happy with?
As others have pointed out, the stated goal is 2%. Keep in mind, however, that the Fed's founding mandate is to balance price stability with unemployment. The mandate takes priority over their stated inflation target, so don't be too surprised if the Fed pivots strategy sooner depending on how the labor market evolves. You should also keep in mind that inflation trends tend to lag behind monetary policy, so the Fed w…
Re: U.S. annual inflation rate drops to 8.5%
#119Re: U.S. annual inflation rate drops to 8.5%
#120Good 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.
We just stopped going to Taco Bell all together. It's kind of crazy. I can't find a reason to go there any longer. As a kid, they were so cheap[0], the running joke was that $20 worth of food there would kill a person. It was about properly priced -- despite being a fan of Taco Bell, their consistency between restaurants (better, today) was terrible in the 90s -- you'd get anywhere from 1/4-3/4 filled shells with random mixes of cheese-lettuce-GroundMeat ratio.
I took my kids there last weekend ... it was over $30.00 and I didn't eat. Fast food -- across the board -- has gone up. In my area, and I suspect most places, it's because they need to pay upwards of $18.00/hr to employ enough people to keep the store (and now restaurant) open. I expect a lot of automation is coming (and I hope like hell McDonald's fixes their terrible in-store ordering kiosk ... and that's one place where it's becoming increasingly expensive to avoid their app).
My grocery bill went from ~$100/trip to $250/trip if I don't do the majority of my shopping at ALDI. So I basically stopped grocery shopping anywhere other than ALDI[1] for anything ALDI carries. I only avoided it, before, because I have 4 options within 2 miles and ALDI is 6 miles away (I love ALDI).
I've started buying a lot of "the maintenance things[2]" at the dollar store (now $1.25, and the independent ones are now $1.00 - $5.00). You have to be careful with those because some items are a terrible deal there and some of the products are fscked up[3] but we've gotten lucky with a few trips -- consider that a 32oz bottle of the same shampoo was almost $8 at the other places and after purchasing a "test bottle" we bought out the rest and two other local stores in the chain. We do that when we find a good one and end up with enough to not have to think about it for a decade.
The saving grace, I guess, is that I haven't had a commute in two years and won't be getting having, again. I also replaced much of the rest of my driving with a OneWheel. I'm filling up my gas tank less than once a month when I was filling up more than once a week, before.
[0] At one point they were running $0.49 tacos -- mid-90s.
[1] While everything went up there, too, it went up less ... although the frozen pizzas that are a guilty pleasure of mine still land around $2.39 (they never go on sale for $1.99 any longer, though).
[2] Shampoo/Conditioner/Soap/etc, things like Band-Aids/Toothbrushes (they carry fancy manual toothbrushes which my kids use)
[3] I've gotten Shampoo from a well known brand that I've purchased at a grocery store which was "separated". I guess I could have called the 800 number; guessing it was counterfeit/meant for destruction and ended up back in the gray-market.