3.3% Inflation, R U happy???

[dewilson58]

Why are people happy with 3.3% inflation??

Stock market jumps.
Buy/Buy/Buy.

I guess it's better than 9.9%.

Are you happy??

[fdpaq0580]

Why are people happy with 3.3% inflation??

Stock market jumps.
Buy/Buy/Buy.

I guess it's better than 9.9%.

Are you happy??

Yep! But, I try to always be happy. I'm to old to be mad.
🫠😉😊

[Taltarzac725]

Yep! But, I try to always be happy. I'm to old to be mad.
🫠😉😊

Nicely put. Stress is a killer.

[fdpaq0580]

And thanks for asking!

[tophcfa]

Why are people happy with 3.3% inflation??

Stock market jumps.
Buy/Buy/Buy.

I guess it's better than 9.9%.

Are you happy??

Nope, not happy at all about prices, even if the reported (and highly massaged) statistic showed zero inflation. The damage has already been done. The stuff most important to us, with inelastic demand, like food, insurance, health care, utilities, taxes, etc… has already gone up way more than any reported statistics indicate and won’t be reversed! The last 3-4 years has been painful from a price perspective.

Also not happy with an economy dependent on excessive debt and low interest rates. We live in a twisted world when stocks do good when we get news showing an economic slowdown, because it gives the Fed an excuse to continue with irresponsible fiscal and monetary policy. Shouldn’t the stock market do well when we get strong economic data, and not vice versa?

[dewilson58]

Nope, ......................

Hate to say it................but could we use some Deinflation??

:mornincoffee:

[dewilson58]

Nicely put. Stress is a killer.

Yes, but inflation is a killer as well.............it's a huge tax.

:read:

[tophcfa]

//////

[Bill14564]

Happy that it's 3.3% rather than 9% or more
Happy that it's near a long term average
Happy that the economy appears to be expanding and not contracting
Happy that most prices are increasing slowly
Happy that businesses will likely be able to increase salaries to cover inflation
Happy that we are not (yet?) experiencing what the doom&gloom group has been predicting for many years.

[Tvflguy]

Yes, but inflation is a killer as well.............it's a huge tax.

:read:

Absolutely. And it’s not ZERO inflation. Simply that the level did not increase. It’s still, what, 3.3%. And all the dramatic inflation levels from past years still impact prices etc etc. all that is built in. But this is a good sign that things are kind of settling.
But the way D.C. spends, nothing is safe. And the deficit…. Enough already.

[dewilson58]

But the way D.C. spends, nothing is safe. And the deficit…. Enough already.

:eclipsee_gold_cup:

[Stu from NYC]

Until the govt decides we need a balanced budget at the very least, we are on a very slippery slope that our kids and grandkids will have to deal with at some point.

[asianthree]

To worry about something I have zero ability to change isn’t how I choose day to day life. Still buy, same things, if it’s more than my grandkids will get less.

[Toymeister]

It is "transitory" so inflation does not matter. Or so we have been told.

[MrFlorida]

Inflation may be down, but prices are still high.

[justjim]

“Most people are as happy as they make up their mind to be.” Most of us who retired and live in The Villages are very fortunate.

[Two Bills]

People keep banging on about the debt our kids will have to pick up.
It's our kids who have been running the show for years.:shrug:
Blame them.
Our turn at the wheel has long passed.

[Stu from NYC]

People keep banging on about the debt our kids will have to pick up.
It's our kids who have been running the show for years.:shrug:
Blame them.
Our turn at the wheel has long passed.

Only partially. Lots of old folks in our govt

[positiveinlife]

As the song goes..."what goes up must come down" Well I've been waiting too long! More than 20% increase in prices of goods we all must buy does not make me happy.

[manaboutown]

I graduated college in 1964. From then until now "officially" inflation has averaged 3.97% per year.

Inflation Calculator 2024 - Calculate U.S. Inflation by Year (https://smartasset.com/investing/inflation-calculator)

Am I happy about it? Yes and no. I am pragmatic about it. It helped me in my younger years as I was investing in real estate with very high leverage and was able to more than double a down payment in a year. Nowadays it is more a question of holding on to what I have.

[Caymus]

People keep banging on about the debt our kids will have to pick up.
It's our kids who have been running the show for years.:shrug:
Blame them.
Our turn at the wheel has long passed.

Is your kid 81?:laugh:

[justjim]

I graduated college in 1964. From then until now "officially" inflation has averaged 3.97% per year.

Inflation Calculator 2024 - Calculate U.S. Inflation by Year (https://smartasset.com/investing/inflation-calculator)

Assuming you’re correct, inflation is currently below average. That’s humbling.

[Topspinmo]

Why are people happy with 3.3% inflation??

Stock market jumps.
Buy/Buy/Buy.

I guess it's better than 9.9%.

Are you happy??


3.3% above the 59% last few years. Stock market inside Ponzi scheme. manipulated by billionaires and career _——-. They know outcome of their actions.

[Topspinmo]

As the song goes..."what goes up must come down" Well I've been waiting too long! More than 20% increase in prices of goods we all must buy does not make me happy.

Some things don’t come back down.:thumbup:

[MorTech]

Keep voting to grind your grandchildren between the millstones of taxes and inflation...they will eventually love you for it :)

The idea is that with people getting poorer, the fed will lower interest rates so the Wall Street Casino(WSC) will enjoy cheap money again.

Gubbermint spending is now approaching 50% of the total economy...True banana republic stuff. I suspect inflation is here to stay...And so does Powell. When Powell leaves we will get MMT free money so inflation will go even higher.

[OrangeBlossomBaby]

People keep banging on about the debt our kids will have to pick up.
It's our kids who have been running the show for years.:shrug:
Blame them.
Our turn at the wheel has long passed.

I have no kids. I blame all YOUR kids. And you, for not teaching them right. How about them apples!

[tophcfa]

I have no kids. I blame all YOUR kids. And you, for not teaching them right. How about them apples!

Do you hit the accelerator when you see one of those signs that says “drive like your kids live here”?

[villager7591]

Inflation reduction act took care of everything, right ?

[Keefelane66]

Haven't had to dive into my pension check or 401k only my SOC SEC and still have money left over…

[Bill14564]

Inflation reduction act took cares of everything, right ?

Stats say 7.0%, 6.5%, IRA, 3.4%, 3.3% (through first five months). Looks like a significant drop to me.

Causation or just correlation? I imagine books will be written attempting to answer that.

[dewilson58]

Stats say 7.0%, 6.5%, IRA, 3.4%, 3.3% (through first five months). Looks like a significant drop to me.

Causation or just correlation? I imagine books will be written attempting to answer that.

100% unrelated.

:eclipsee_gold_cup:

[gatorbill1]

Why are people happy with 3.3% inflation??

Stock market jumps.
Buy/Buy/Buy.

I guess it's better than 9.9%.

Are you happy??

Not what Fed reported today. 2.8% inflation and 4% unemployment. Pretty Good economy.

[Bill14564]

Stats say 7.0%, 6.5%, IRA, 3.4%, 3.3% (through first five months). Looks like a significant drop to me.

Causation or just correlation? I imagine books will be written attempting to answer that.

100% unrelated.

:eclipsee_gold_cup:

Well I guess that settles it then. No analysis necessary, nothing to write a book about. 100% unrelated and that's that.

[dewilson58]

Well I guess that settles it then. No analysis necessary, nothing to write a book about. 100% unrelated and that's that.

:BigApplause::BigApplause:

[bmcgowan13]

Until the govt decides we need a balanced budget at the very least, we are on a very slippery slope that our kids and grandkids will have to deal with at some point.

I was a federal employee from 1978-2012. I remember when President Bill Clinton left office and there was a budget SURPLUS...We (federal employees) all thought we would get a piece of that. Ah, the good old days...

From Wiki... [Clinton] had budget surpluses for fiscal years 1998–2001, the only such years from 1970 to 2023. Clinton's final four budgets were balanced budgets with surpluses, beginning with the 1997 budget.

What happened? How did we go off track?? What lead to this inflation and the recession of 2008?

"The Great Recession of 2008 to 2009 was the worst economic downturn in the U.S. since the Great Depression. Domestic product declined 4.3%, the unemployment rate doubled to more than 10%, home prices fell roughly 30% and at its worst point, the S&P 500 was down 57% from its highs."

You are tragically on point...we are leaving our economic mess (and financial burden) to our children and grandchildren. I know that our Social Security and Medicare benefits are always on the table as a solution but is that fair? You and I paid for Medicare and SS benefits for more than 40-50 years--but the government (including our Senator Rick Scott) wants to "revisit" our benefits to reduce taxes.

Not a simple solution to be sure...

[CoachKandSportsguy]

shades of 476 AD

[JMintzer]

Stats say 7.0%, 6.5%, IRA, 3.4%, 3.3% (through first five months). Looks like a significant drop to me.

Causation or just correlation? I imagine books will be written attempting to answer that.

Still looking for that silver lining, I see...

[JMintzer]

I was a federal employee from 1978-2012. I remember when President Bill Clinton left office and there was a budget SURPLUS...We (federal employees) all thought we would get a piece of that. Ah, the good old days...

From Wiki... [Clinton] had budget surpluses for fiscal years 1998–2001, the only such years from 1970 to 2023. Clinton's final four budgets were balanced budgets with surpluses, beginning with the 1997 budget.

What happened? How did we go off track?? What lead to this inflation and the recession of 2008?

"The Great Recession of 2008 to 2009 was the worst economic downturn in the U.S. since the Great Depression. Domestic product declined 4.3%, the unemployment rate doubled to more than 10%, home prices fell roughly 30% and at its worst point, the S&P 500 was down 57% from its highs."

You are tragically on point...we are leaving our economic mess (and financial burden) to our children and grandchildren. I know that our Social Security and Medicare benefits are always on the table as a solution but is that fair? You and I paid for Medicare and SS benefits for more than 40-50 years--but the government (including our Senator Rick Scott) wants to "revisit" our benefits to reduce taxes.

Not a simple solution to be sure...

Who held the purse strings during that time?

[Bill14564]

Still looking for that silver lining, I see...

Sorry, I don’t see the value judgment in my statement.

But now that you mention it, 3.3% is a whole lot better than 6.5% or 7.0%

[Rainger99]

Not what Fed reported today. 2.8% inflation and 4% unemployment. Pretty Good economy.

Not sure where you got 2.8% inflation.

Every report that I saw said that annual inflation dipped to 3.3% in May from 3.4% in April.

You may have seen the projections for inflation and now anticipate core prices to rise 2.8% in the fourth quarter from a year earlier, up from 2.6% in their March projections.

[dewilson58]

Not what Fed reported today. 2.8% inflation and 4% unemployment. Pretty Good economy.

I'll talk technical..............2.8% is wrong.

[CoachKandSportsguy]

I'll talk technical..............2.8% is wrong.

:beer3:

To answer the OP question:

Happiness has nothing to do with inflation. . .

Its whether the ball goes in the hole in par :pepper2: or more :swear:

[Vermilion Villager]

Yes, but inflation is a killer as well.............it's a huge tax.

:read:
Yes....but who do you blame?
From Supermarket News: In March, Publix reported net earnings of $4.3 billion in 2023, up nearly 50% from the $2.9 billion reported in 2022.

[dewilson58]

Yes....but who do you blame?
From Supermarket News: In March, Publix reported net earnings of $4.3 billion in 2023, up nearly 50% from the $2.9 billion reported in 2022.

Look past the headlines:
Excluding the impact of net unrealized gains on equity securities in 2023 and net unrealized losses on equity securities in 2022, net earnings for the fiscal year ended Dec. 30, 2023 would have been $4.1 billion, compared to $4 billion in 2022, an increase of 1%.

Does that make you feel better???

[mtdjed]

Stats say 7.0%, 6.5%, IRA, 3.4%, 3.3% (through first five months). Looks like a significant drop to me.

Causation or just correlation? I imagine books will be written attempting to answer that.

and how about the rest of the story. If you have the right numbers, prices are still rising, not dropping. The numbers above only show the rate of inflation is decreasing, not the prices.

Just finished an article about soft drink prices. Coke, Pepsi and others have used COVID and inflation to raise their prices from $4 a 12 Pack to $7 to $9. They are also increasing their margins as the test the market to see how much they will absorb.

Once the inflation door is open, they get us used to the higher prices they won't go back. Nobody out there looking to reduce price unless the market uses its power.

[Stu from NYC]

Who held the purse strings during that time?

Clinton got all the credit but it was really a shared bipartisan result

[Bill14564]

and how about the rest of the story. If you have the right numbers, prices are still rising, not dropping. The numbers above only show the rate of inflation is decreasing, not the prices.

Just finished an article about soft drink prices. Coke, Pepsi and others have used COVID and inflation to raise their prices from $4 a 12 Pack to $7 to $9. They are also increasing their margins as the test the market to see how much they will absorb.

Once the inflation door is open, they get us used to the higher prices they won't go back. Nobody out there looking to reduce price unless the market uses its power.

The definition of inflation is the rate of increase in prices. As long as inflation is greater than zero, prices will be increasing. The numbers show the rate of inflation is decreasing which means the prices are increasing more slowly this year than they did last year or the year before. That is what inflation means.

Coke prices were more than $4 for a 12 pack before COVID. We drink a lot of it and I have been shopping for sales for a long time now. Increasing their margins as a test of what the market will bear? You realize that's the way capitalism works, right?

There may be some slight corrections to prices that have increased too rapidly but overall, we have what we have. I believe this is a good thing since a major decrease in prices, deflation, is a sign of a problem in the economy. But, that discussion is best left to those who have spent much more time studying economics.

[Rainger99]

Coke prices were more than $4 for a 12 pack before COVID.

You could almost always get a 12 pack of coke or Pepsi for $2.99 pre Covid. This was not the regular price but it was the sale price. They usually went on sale about once a month. Since moving to the Villages, coke is usually buy 2, get 1 free. Pepsi s occasionally buy 2, get 2.

Right now, Pepsi is $9.49 for a 12 pack at Winn Dixie and $9.59 at Publix. At Walmart, a 12 pack is $7.28 or $11.58 for a 24 pack.

[Vermilion Villager]

Look past the headlines:
Excluding the impact of net unrealized gains on equity securities in 2023 and net unrealized losses on equity securities in 2022, net earnings for the fiscal year ended Dec. 30, 2023 would have been $4.1 billion, compared to $4 billion in 2022, an increase of 1%.

Does that make you feel better???
See........ this is how people try to justify billionaire corporations being billionaire corporations. Lifted from Publix corporate website:Net earnings for the fiscal year ended Dec. 30, 2023 were $4.3 billion, compared to $2.9 billion in 2022, an increase of 49%.
A savvy accounting firm could create a spreadsheet that showed you Publix was damn near bankrupt!!!:rolleyes:

[Caymus]

See........ this is how people try to justify billionaire corporations being billionaire corporations. Lifted from Publix corporate website:Net earnings for the fiscal year ended Dec. 30, 2023 were $4.3 billion, compared to $2.9 billion in 2022, an increase of 49%.
A savvy accounting firm could create a spreadsheet that showed you Publix was damn near bankrupt!!!:rolleyes:

So, employee-owned Publix is a corrupt corporation?

[villager7591]

By "fortunate," if you mean we worked hard, didn't spend frivolously, saved...then yes, I agree, I am fortunate.

[villager7591]

It was 1.7% three and a half years ago. So, am I happy with 3.3 ? No !

[CoachKandSportsguy]

What makes inflation hard to handle is that it's an everyday phenomena, whereas your annual salary / hourly rate / social security payment increase is only once a year, to catchup to the past. So unless you are in a place to raise your own income faster, then your income is always behind the cost increase curve. . . .

So what's good for investments in corporations (rising prices, increased profits) is not good for consumers, and what's good for consumers (cheap prices, very slowly increasing) , is not good for corporations. . pick your poison. . . and for this reason, some of your assets should be invested in corporations. . .

If corps want to grow profits and price inflation is zero( zero revenue growth) , then the only way they can get their bonuses is to reduce costs. To reduce costs, they can squeeze their material supply chain, or lay off people and replace them with automation .

This is where automation will kill the consumer economy by replacing consumers with automation. . and the only offset is to increase taxes on corporations and reduce taxes / increase support to consumers. . .

be careful what you wish for. .

[Normal]

What makes inflation hard to handle is that it's an everyday phenomena, whereas your annual salary / hourly rate / social security payment increase is only once a year, to catchup to the past. So unless you are in a place to raise your own income faster, then your income is always behind the cost increase curve. . . .

So what's good for investments in corporations (rising prices, increased profits) is not good for consumers, and what's good for consumers (cheap prices, very slowly increasing) , is not good for corporations. . pick your poison. . . and for this reason, some of your assets should be invested in corporations. . .

If corps want to grow profits and price inflation is zero( zero revenue growth) , then the only way they can get their bonuses is to reduce costs. To reduce costs, they can squeeze their material supply chain, or lay off people and replace them with automation .

This is where automation will kill the consumer economy by replacing consumers with automation. . and the only offset is to increase taxes on corporations and reduce taxes / increase support to consumers. . .

be careful what you wish for. .

Taxes on corporations are a bad thing. Guess who pays that bill? The consumer

[Byte1]

Not what Fed reported today. 2.8% inflation and 4% unemployment. Pretty Good economy.

:a20::1rotfl::1rotfl:

[Byte1]

I was a federal employee from 1978-2012. I remember when President Bill Clinton left office and there was a budget SURPLUS...We (federal employees) all thought we would get a piece of that. Ah, the good old days...

From Wiki... [Clinton] had budget surpluses for fiscal years 1998–2001, the only such years from 1970 to 2023. Clinton's final four budgets were balanced budgets with surpluses, beginning with the 1997 budget.

What happened? How did we go off track?? What lead to this inflation and the recession of 2008?

"The Great Recession of 2008 to 2009 was the worst economic downturn in the U.S. since the Great Depression. Domestic product declined 4.3%, the unemployment rate doubled to more than 10%, home prices fell roughly 30% and at its worst point, the S&P 500 was down 57% from its highs."

You are tragically on point...we are leaving our economic mess (and financial burden) to our children and grandchildren. I know that our Social Security and Medicare benefits are always on the table as a solution but is that fair? You and I paid for Medicare and SS benefits for more than 40-50 years--but the government (including our Senator Rick Scott) wants to "revisit" our benefits to reduce taxes.

Not a simple solution to be sure...

"Budget???" That's funny. Does anyone REALLY understand the meaning of "budget?" A budget is just a plan for the following year (in this case). He had a budget plan of spending for the following year, which did NOT include his being in office. An interesting CATO article:
https://www.cato.org/commentary/no-bill-clinton-didnt-balance-budget#

But, let's stick to the subject, which is "Inflation."

[jimbomaybe]

What makes inflation hard to handle is that it's an everyday phenomena, whereas your annual salary / hourly rate / social security payment increase is only once a year, to catchup to the past. So unless you are in a place to raise your own income faster, then your income is always behind the cost increase curve. . . .

So what's good for investments in corporations (rising prices, increased profits) is not good for consumers, and what's good for consumers (cheap prices, very slowly increasing) , is not good for corporations. . pick your poison. . . and for this reason, some of your assets should be invested in corporations. . .

If corps want to grow profits and price inflation is zero( zero revenue growth) , then the only way they can get their bonuses is to reduce costs. To reduce costs, they can squeeze their material supply chain, or lay off people and replace them with automation .

This is where automation will kill the consumer economy by replacing consumers with automation. . and the only offset is to increase taxes on corporations and reduce taxes / increase support to consumers. . .

be careful what you wish for. .
Raising the taxes on businesses adds to their cost of doing business and of course that is added to the prices they charge , the standard of living is determined by how productive the supply chain works, the supply chain is the function of business, competitive pressure is always at work to lower cost because that makes for a higher profit, you go to work to put money in your pocket, businesses exist for the same reason, corps/business do not cause inflation they deal with it

[Byte1]

Since some folks live on a fixed income, inflation hurts us more than those that have investments that are dependent on high interest rates. Inflation may go down but prices don't. In order to see the damage inflation does, you have to compare today's prices with yesteryear's prices. In many cases prices do not go down, once raised. Creating a personal budget for the year damaged by high inflation rates for retirees on a fixed income means cutting luxuries in order to pay for necessities. Like someone else said, inflation going down, does not mean costs go down. It just means that increases level off, but they do not go back to pre-inflationary prices. I am happy for those that have investments dependent on the stock market when inflation means interest rates go up, that doesn't help everyone else. Damages caused by inflation hardly ever repairs itself. I don't applaud a 3.3% inflation rate, when the damage from accumulated inflation for the last three years will take years to rebound from.

[Keefelane66]

So, employee-owned Publix is a corrupt corporation?
No but they are obviously marking up prices.

[Normal]

No but they are obviously marking up prices.

I kind of relate to them as Wegmans up north. They are higher priced, but I don’t feel like traveling a lot for groceries.

[OrangeBlossomBaby]

Why are people happy with 3.3% inflation??

Stock market jumps.
Buy/Buy/Buy.

I guess it's better than 9.9%.

Are you happy??

Well let's see. Four years ago my income was my part time job at Publix, maybe $400/month total. Bursitis forced me to quit, and my income went to zero. Last year I turned 62, and now get $958/month in Social Security. Hubby was, and still is, providing all the rest in Social Security, pension, and a 2-day/week job.

I'd say we're doing great.

[CoachKandSportsguy]

Taxes on corporations are a bad thing. Guess who pays that bill? The consumer

So how do consumers consume if the employers keep eliminating them. Jobs aren't unlimited, and paying above minimum wage jobs are getting smaller. . .

If you think that the minimum wage consumers can keep this entire economy growing, you haven't been in the work force lately.

theory is great, until it doesn't scale and work in real life.

[JMintzer]

Sorry, I don’t see the value judgment in my statement.

But now that you mention it, 3.3% is a whole lot better than 6.5% or 7.0%

Yet you keep ignoring that that 3.3% is still significant;y hicher than 3.5 years ago and when added to the nearly 17% cumulative inflation of the 3 .5 previous years, you have a 20% increase in prices...

But sure, it's better than a 25% increase in prices, so we got that going for us... Which is nice...

Kinda' like receiving "total consciousness on your death bead"...

[JMintzer]

Clinton got all the credit but it was really a shared bipartisan result

"He turned me into a NEWT..."

[Bill14564]

Yet you keep ignoring that that 3.3% is still significant;y hicher than 3.5 years ago and when added to the nearly 17% cumulative inflation of the 3 .5 previous years, you have a 20% increase in prices...

But sure, it's better than a 25% increase in prices, so we got that going for us... Which is nice...

Kinda' like receiving "total consciousness on your death bead"...

3.5 years ago, 2021? Inflation at that time was 7% (https://www.investopedia.com/inflation-rate-by-year-7253832); is that what you want?

Yes, inflation has been lower in the recent past. Most years since 1996 have had inflation rates less than 3%. I would certainly prefer 1% over 3.3% but I see a decreasing trend over the last four years as a positive sign.

[Stu from NYC]

3.5 years ago, 2021? Inflation at that time was 7% (https://www.investopedia.com/inflation-rate-by-year-7253832); is that what you want?

Yes, inflation has been lower in the recent past. Most years since 1996 have had inflation rates less than 3%. I would certainly prefer 1% over 3.3% but I see a decreasing trend over the last four years as a positive sign.

I do believe that for those of us without a mortgage cost of living increases are substantially higher than what they are telling us.

[dewilson58]

Taxes on corporations are a bad thing. Guess who pays that bill? The consumer

Agree.

In the weeds with debits and credits................"Tax big nasty corporations".

Reality: No such thing as Taxes on Corporations. It's jus another cost of doing business and who pays for these costs, plus margin???

Hmmmmmmmmmmm

[MorTech]

People keep banging on about the debt our kids will have to pick up.
It's our kids who have been running the show for years.:shrug:
Blame them.
Our turn at the wheel has long passed.

That is probably true now...The under 50 year old vote the future. They will continue to try and vote themselves "free stuff" and will end up starving...like the third world. Maybe they will figure it out.

"From each according to their ability, to each according to their need" makes for an unable and needy society...Always :)

[Normal]

So how do consumers consume if the employers keep eliminating them. Jobs aren't unlimited, and paying above minimum wage jobs are getting smaller. . .

If you think that the minimum wage consumers can keep this entire economy growing, you haven't been in the work force lately.

theory is great, until it doesn't scale and work in real life.

If the government taxes a product/company, the price of the product goes up to cover the loss.

It’s fairly simple really.

No business is out to work for a loss.

[opinionist]

Inflation can be viewed as the growth of debt since money is now printed to create new debt.
The greatest scam in history involves creating new debt (a few keystrokes) and collecting interest on that debt.
Money could have been created with non-interest-bearing treasury notes, but that would deprive banker families of enormous wealth.

U.S. National Debt Clock : Real Time (https://www.usdebtclock.org/)

[JRcorvette]

Why are people happy with 3.3% inflation??

Stock market jumps.
Buy/Buy/Buy.

I guess it's better than 9.9%.

Are you happy??

It is not Really 3.3%… not on items that we purchase every day! Try more like 18%
No I am not happy at all because it could have been avoided!

[dewilson58]

It is not Really 3.3%… not on items that we purchase every day! Try more like 18%
No I am not happy at all because it could have been avoided!

3.3% is the last 12 months.

Your 18% is the last ~3 years.
In MANY cases, it's 30%, 40%, 50%, etc.
Very Painful.

[JMintzer]

3.5 years ago, 2021? Inflation at that time was 7% (https://www.investopedia.com/inflation-rate-by-year-7253832); is that what you want?

Yes, inflation has been lower in the recent past. Most years since 1996 have had inflation rates less than 3%. I would certainly prefer 1% over 3.3% but I see a decreasing trend over the last four years as a positive sign.

Ridiculous question.

But sure, keep crowing how great the inflation rate is. You seem to be the only one who actually believes that nonsense...

[OrangeBlossomBaby]

It is not Really 3.3%… not on items that we purchase every day! Try more like 18%
No I am not happy at all because it could have been avoided!

I pay no tax at all on milk, bread, meat, fish, cheese, and many other items at the supermarket. Those are my "every day" purchases.

[JMintzer]

I pay no tax at all on milk, bread, meat, fish, cheese, and many other items at the supermarket. Those are my "every day" purchases.

Who mentioned taxes on food?

[Plinker]

3.3% is the last 12 months.

Your 18% is the last ~3 years.
In MANY cases, it's 30%, 40%, 50%, etc.
Very Painful.

True.
It never ceases to amaze me how many people are math-challenged.
They apparently don’t realize that the current 3% inflation rate is on top of the already 20% (or more) hike in prices. In order for prices of goods to actually decrease would require a negative inflation rate.

[Normal]

Who mentioned taxes on food?

You pay it, it’s just hidden and placed in the purchase price of food. Fuel taxes for transportation etc.

[JMintzer]

You pay it, it’s just hidden and placed in the purchase price of food. Fuel taxes for transportation etc.

It's got nothing to do with inflation, which is the topic of the thread...

[dewilson58]

True.
It never ceases to amaze me how many people are math-challenged.
They apparently don’t realize that the current 3% inflation rate is on top of the already 20% (or more) hike in prices. In order for prices of goods to actually decrease would require a negative inflation rate.

As they say.................it's a huge tax on everyone.
It's more painful for "lower income" individuals.
People don't realize...............they jus incurred a 20% tax.....every year going forward.

O U C H !!!

[dewilson58]

Who mentioned taxes on food?

Was trying to follow the "logic" as well.

:22yikes:

[dewilson58]

It's got nothing to do with inflation, which is the topic of the thread...

Right On Brother.

Wow.............two posts back-to-back.

[tophcfa]

As they say.................it's a huge tax on everyone.
It's more painful for "lower income" individuals.
People don't realize...............they jus incurred a 20% tax.....every year going forward.

O U C H !!!

And all future price increases compound of a much higher base, double OUCH!!!

[manaboutown]

I pay no tax at all on milk, bread, meat, fish, cheese, and many other items at the supermarket. Those are my "every day" purchases.

Oh you pay taxes on them alright, through the corporations that sell them paying taxes on their profits. BTW, in New Mexico you would pay gross receipts tax on groceries, medical and legal bills, literally any service you pay for or item you buy. Its gross receipts tax is essentially a sales tax on steroids and one of the reasons NM has failed to attract businesses and otherwise develop.

Oh, I almost forgot. NM taxes social security, too!

[JMintzer]

Right On Brother.

Wow.............two posts back-to-back.

Stop it, you're starting to scare me... :thumbup:

[PugMom]

i'm not sure if i'm happy or not. you know the way they like to fudge these numbers to get a positive outlook. is it really what i'm seeing, or something else that occurs every 4 years?

[PugMom]

People keep banging on about the debt our kids will have to pick up.
It's our kids who have been running the show for years.:shrug:
Blame them.
Our turn at the wheel has long passed.

don't you love the way they try to blame boomers for the economy? what had we been telling them for years growing up? it can grind my gears

[PugMom]

I have no kids. I blame all YOUR kids. And you, for not teaching them right. How about them apples!

we tried, Girl! some kids listened but most didn't. we as parents started teaching them credit is the way to live by racking up debt instead of using cash $$. when they saw all those credit cards coming it was a magic payday spending spree! file bankruptcy? why not, everyone else does. have no money? worry not, just borrow & borrow until you can no more.

[TommyBoy9]

People keep saying "our grandchildren are going to inherit our debt". While its true, its misleading. The fact is each time our government borrows money, which it has been doing like crazy for decades and especially of late, we immediately begin paying interest on that money. Just like when you take a car or home loan, you immediately get charged with interest. Same thing. And rather than the nice ~1-2% loan rate Obama and Trump had, Biden is borrowing at ~5% rates, meaning not good news for us taxpayers.

The Congressional Budget Office has already announced that this year, we will pay more interest on our current debt than our ENTIRE defense budget! They project that in 5 years $.50 out of each $1.00 we pay in tax will go to pay the interest on our debt (due to current borrowing rates - see those generous student loan payoffs, and crazy handouts, aren't actually free after all).

Without massive change, within a decade or so they project 100% of our tax revenue will go to pay the interest on our debt. No more money for SS, Medicare, Defense, Welfare, etc. Depressing I know, but its the state we are in.

[Normal]

People keep saying "our grandchildren are going to inherit our debt". While its true, its misleading. The fact is each time our government borrows money, which it has been doing like crazy for decades and especially of late, we immediately begin paying interest on that money. Just like when you take a car or home loan, you immediately get charged with interest. Same thing. And rather than the nice ~1-2% loan rate Obama and Trump had, Biden is borrowing at ~5% rates, meaning not good news for us taxpayers.

The Congressional Budget Office has already announced that this year, we will pay more interest on our current debt than our ENTIRE defense budget! They project that in 5 years $.50 out of each $1.00 we pay in tax will go to pay the interest on our debt (due to current borrowing rates - see those generous student loan payoffs, and crazy handouts, aren't actually free after all).

Without massive change, within a decade or so they project 100% of our tax revenue will go to pay the interest on our debt. No more money for SS, Medicare, Defense, Welfare, etc. Depressing I know, but its the state we are in.

It cost about 2.5% of GDP to service the US debt. The real problem is adding 1 trillion to that debt every 100 days or the equivalence of 10%annually with the current debt at 34 trillion. This can’t be sustained. The US government wins out when we have inflation, because yesterday’s dollar doesn’t cost as much as today’s. It hits the people hard, but politicians bask in it.

[melpetezrinski]

Why are people happy with 3.3% inflation??

Stock market jumps.
Buy/Buy/Buy.

I guess it's better than 9.9%.

Are you happy??

As long as the Fed keeps trying to fight inflation with higher interest rates, I couldn’t be happier. I know that might not be the most popular opinion but I'm strictly looking at it from a financial perspective.

[Stu from NYC]

People keep saying "our grandchildren are going to inherit our debt". While its true, its misleading. The fact is each time our government borrows money, which it has been doing like crazy for decades and especially of late, we immediately begin paying interest on that money. Just like when you take a car or home loan, you immediately get charged with interest. Same thing. And rather than the nice ~1-2% loan rate Obama and Trump had, Biden is borrowing at ~5% rates, meaning not good news for us taxpayers.

The Congressional Budget Office has already announced that this year, we will pay more interest on our current debt than our ENTIRE defense budget! They project that in 5 years $.50 out of each $1.00 we pay in tax will go to pay the interest on our debt (due to current borrowing rates - see those generous student loan payoffs, and crazy handouts, aren't actually free after all).

Without massive change, within a decade or so they project 100% of our tax revenue will go to pay the interest on our debt. No more money for SS, Medicare, Defense, Welfare, etc. Depressing I know, but its the state we are in.

And foolishly the same people who are causing this keep getting reelected

[TommyBoy9]

It cost about 2.5% of GDP to service the US debt. The real problem is adding 1 trillion to that debt every 100 days or the equivalence of 10%annually with the current debt at 34 trillion. This can’t be sustained. The US government wins out when we have inflation, because yesterday’s dollar doesn’t cost as much as today’s. It hits the people hard, but politicians bask in it.

I think GDP is a largely irrelevant metric. Really its our government's tax revenue that matters. That amount that we the people have agreed upon to pay them annually, under the assumption that they will spend wisely. I know many economists and politicians use GDP often, but I think they do so to downplay the seriousness of our financial situation. Its sort of like if a family member going to the bank for a loan has tons of debt, but tells the bank not to worry because their siblings and cousins and aunts and uncles, etc. have lots of money. The bank cares only about the borrowers (governments) assets, and cares not for the rest of his family's financial situation (the taxpayers). Unless of course the other family members agree to co-sign the loan (all of the US citizens agree to pay WAY more in taxes).

...I am open to another train of thought though regarding 'GDP's value' in US debt discussions, if you care to discuss.

Yes, I agree. The gov wants, ...needs, inflation. But our debt is now so big, and still growing due to the unending handouts from this administration, that I don't see how even mass inflation makes the numbers work out.

[jimbomaybe]

I think GDP is a largely irrelevant metric. Really its our government's tax revenue that matters. That amount that we the people have agreed upon to pay them annually, under the assumption that they will spend wisely. I know many economists and politicians use GDP often, but I think they do so to downplay the seriousness of our financial situation. Its sort of like if a family member going to the bank for a loan has tons of debt, but tells the bank not to worry because their siblings and cousins and aunts and uncles, etc. have lots of money. The bank cares only about the borrowers (governments) assets, and cares not for the rest of his family's financial situation (the taxpayers). Unless of course the other family members agree to co-sign the loan (all of the US citizens agree to pay WAY more in taxes).

...I am open to another train of thought though regarding 'GDP's value' in US debt discussions, if you care to discuss.

Yes, I agree. The gov wants, ...needs, inflation. But our debt is now so big, and still growing due to the unending handouts from this administration, that I don't see how even mass inflation makes the numbers work out.
Some time ago did just a little reading on the issue of sovereign debt, all the "money" that was borrowed by governments, that the governed owed , depressing, the numbers high and getting higher with no practical solution, and certainly not just this country. Doom and gloom prediction are easy to find, practical solution not so. Faced with a worst case scenario of a international financial systemic failure you can be sure that governments would exert their sovereign powers for "easy" short term solutions that would create long term problems, oh well.

[Normal]

I think GDP is a largely irrelevant metric. Really its our government's tax revenue that matters. That amount that we the people have agreed upon to pay them annually, under the assumption that they will spend wisely. I know many economists and politicians use GDP often, but I think they do so to downplay the seriousness of our financial situation. Its sort of like if a family member going to the bank for a loan has tons of debt, but tells the bank not to worry because their siblings and cousins and aunts and uncles, etc. have lots of money. The bank cares only about the borrowers (governments) assets, and cares not for the rest of his family's financial situation (the taxpayers). Unless of course the other family members agree to co-sign the loan (all of the US citizens agree to pay WAY more in taxes).

...I am open to another train of thought though regarding 'GDP's value' in US debt discussions, if you care to discuss.

Yes, I agree. The gov wants, ...needs, inflation. But our debt is now so big, and still growing due to the unending handouts from this administration, that I don't see how even mass inflation makes the numbers work out.

I would concur on tax revenue. We are on a unique path from the rest of the world. We have a Fed that sets interest rates to reduce inflationary pressure separate from what our spend happy leaders want. Or at least so it SEEMS.

Our FED has dictated a 2% goal for a healthy economy and so far the soft landing seems to be obtainable. The exception is the housing market which they could care less about. I foresee a slight increase in the lending rate or current status quo at least till year’s end. We need to get inflation down from 3.3%. This should keep current servicing rates predictable.

The twist is continued borrowing. How high can this go? I’m not thinking the average citizen can afford much more due in large part to inflation at the grocery stores and the rising cost in home purchases and borrowing. This leaves the following questions: Can Americans pay more in taxes? How much debt is solvent?

Companies could be taxed, but they won’t operate at a loss, they will raise prices on their goods. We’ve seen the failure of VAT taxes in Europe and the pickle they are in. Perhaps a straight forward taxing system is needed? Flat taxing for everything on everybody?

The Fed separation from government will continue, it has to. It’s the only system that keeps our financial system stable. Debt will be paid down only after consequences are felt by all of us and we demand something be done. Only then will politicians stand on that platform. Till then, we will have a special interests taxing system with thousands of loopholes and the spend, spend, spend giveaway attitude by politicians.

[CoachKandSportsguy]

another failed upload

[kingofbeer]

another failed upload
It is a real problem for young families. But should not be a problem for seniors who have adequate income and savings. That being said I don't smoke or drink. But I do see the price of beer, wine, and liquor has gone thru the roof. Beef prices too. Not so much chicken or produce. So those senior who smoke, or drink, or eat beef every night are really hurting. Oh well...

[collie1228]

The real problem is the basis of the rate. When your government uses a rate that removes food and energy price inflation as they are "too volatile", the politicians get to skate on those items that affect you most. If you are like me, with a private pension that makes up the majority of my income, the 19% accumulated inflation over the past three years will never be recouped in any manner. It's gone. My pension is worth 19% less than it was worth three years ago (plus the food and energy inflation that has been removed from the rate).

[kingofbeer]

The real problem is the basis of the rate. When your government uses a rate that removes food and energy price inflation as they are "too volatile", the politicians get to skate on those items that affect you most. If you are like me, with a private pension that makes up the majority of my income, the 19% accumulated inflation over the past three years will never be recouped in any manner. It's gone. My pension is worth 19% less than it was worth three years ago (plus the food and energy inflation that has been removed from the rate).
In retrospect, you could have taken a lump sum payment from your pension.

[Stu from NYC]

In retrospect, you could have taken a lump sum payment from your pension.

Hindsight is 20/20

[Keefelane66]

Four years ago people were hoarding toilet paper, chlorine wipes and paper towels.

[OrangeBlossomBaby]

Four years ago people were hoarding toilet paper, chlorine wipes and paper towels.

...and rubbing alcohol, bread, aloe vera juice, packaged foods, bottled water, canned foods, neoprene and latex gloves, ammonia, masks, paper napkins, sponges, Lysol spray and other aerosol air disinfectants.

[kp11364]

Hate to say it................but could we use some Deinflation??

:mornincoffee:

Prices need to be REDUCED to get back to the pre-Biden level of inflation....

[LeRoySmith]

I'm not going to read all the posts in this thread so mine may be a duplicate. Theres also a good possibility this post will get deleted......

The federal government collected nearly $4.5 trillion in revenue in fiscal year 2023. They spent ~$6.2 trillion in FY 2023. This is not a one or the other party problem, its an all government and all citizen issue.

Who can spend more than they make year after year and stay solvent?
Who in their right mind thinks this is 1 little tiny bit ok?

[MorTech]

FWIW....

https://www.youtube.com/watch?v=zzVmuiXVa7Y

Really the only way out of state slavery.

[MrFlorida]

Is inflation really down to 3.3 ? They can tell us anything, but how do we prove it ? Face it, our leaders lie to us.
Go the the food store, or buy gas or a new car, prices are still high, and that's inflation to me.

[Bill14564]

Is inflation really down to 3.3 ? They can tell us anything, but how do we prove it ? Face it, our leaders lie to us.
Go the the food store, or buy gas or a new car, prices are still high, and that's inflation to me.

Gas in June 2023 was right about $3.30/gal. Today it is close to $3.00/gal. That would be about a 10% DECREASE.

According to here (https://www.in2013dollars.com/Eggs/price-inflation), the price of a dozen eggs in 2023 was $2.80 but only $2.70 in 2024. That would be about a 3.6% DECREASE. WinnDixie is advertising $2.99 and Walmart is $2.06 so $2.70 is believable.

Inflation numbers are calculated on more than just one particular item on one particular day. There is more than one inflation index and certain items are specifically excluded from certain indices. I believe the 3.3% number for the year-over-year increase for a particular index for a particular month... I just don't know which month or which index or what that index includes/excludes.

[Byte1]

Gas in June 2023 was right about $3.30/gal. Today it is close to $3.00/gal. That would be about a 10% DECREASE.

According to here (https://www.in2013dollars.com/Eggs/price-inflation), the price of a dozen eggs in 2023 was $2.80 but only $2.70 in 2024. That would be about a 3.6% DECREASE. WinnDixie is advertising $2.99 and Walmart is $2.06 so $2.70 is believable.

Inflation numbers are calculated on more than just one particular item on one particular day. There is more than one inflation index and certain items are specifically excluded from certain indices. I believe the 3.3% number for the year-over-year increase for a particular index for a particular month... I just don't know which month or which index or what that index includes/excludes.

Hah, nice try! Now compare your "today" prices with those of five years ago.
Eggs in 2019 = $1.40
Gasoline in 2018=$2.74 2019=$2.64 2020=$2.17
Anyone that shops and/or pays their monthly bills, knows when someone is lying to them when they are told that they are living better now than sometime in the past. When the price of products is 30-50% more than another given time, and their fixed income only increases 1-3% and they have to start sacrificing, they know that it's not raining when someone is peeing on their shoes.
3% inflation only means that it has only INCREASED that much since last year. It does not mean that prices have gone down.

[Bill14564]

...

Inflation numbers are calculated on more than just one particular item on one particular day. There is more than one inflation index and certain items are specifically excluded from certain indices. I believe the 3.3% number for the year-over-year increase for a particular index for a particular month... I just don't know which month or which index or what that index includes/excludes.

Hah, nice try! Now compare your "today" prices with those of five years ago.
Eggs in 2019 = $1.40
Gasoline in 2018=$2.74 2019=$2.64 2020=$2.17
Anyone that shops and/or pays their monthly bills, knows when someone is lying to them when they are told that they are living better now than sometime in the past. When the price of products is 30-50% more than another given time, and their fixed income only increases 1-3% and they have to start sacrificing, they know that it's not raining when someone is peeing on their shoes.
3% inflation only means that it has only INCREASED that much since last year. It does not mean that prices have gone down.

Thank you for that explanation but I'm pretty sure that's exactly what I wrote.

Yes, INflation means prices have INcreased.

As for fixed income, much to my surprise it appears that SS fixed income has increased slightly MORE than inflation over the past three years (a range chosen by another commenter).
Inflation: 7.0%, 6.5%, 3.4% -> compounded increase of 17.8%
SS CoLA: 5.9%, 8.7%, 3.2% -> compounded increase of 18.8%
Over the past five years, both inflation and SS CoLAs saw a compounded increase of 22.2%.

It looks like egg prices are slightly below a trend of increases that started in 2001 and gas prices are slightly below a trend that began in 2015. There have been periods of extremes, both high and low, within those time periods but the general trend is clear.

[tophcfa]

Gas in June 2023 was right about $3.30/gal. Today it is close to $3.00/gal. That would be about a 10% DECREASE.

Every time the price of a barrel of West Texas Intermediate Crude Oil goes up, the price of just about everything else goes up with it. When the price of WTI goes back down, just about everything else stays elevated. It’s a better measure of inflation to look at prices of things like food, health care, insurance, and utilities.

[Normal]

Every time the price of a barrel of West Texas Intermediate Crude Oil goes up, the price of just about everything else goes up with it. When the price of WTI goes back down, just about everything else stays elevated. It’s a better measure of inflation to look at prices of things like food, health care, insurance, and utilities.

Labor prices keep prices up also.

[Sabella]

I bet that 3% figure is not a true reflection and that the real inflation is a much higher percentage than that