[Maker]

Originally Posted by OrangeBlossomBaby

So - here's how it works:
Widgets were invented 10 years ago, and were $1 each.
Last year, you needed a widget. Last year, widgets cost $9 each.
This year, the same widget is $3.
Yes - it's up from when it first came out on the market. But it's much less than it was last year.

Is that a weird fantasy world math? Name the widget. Something technology based? Obsolete today because something newer was created?

The inflation numbers are published monthly, for a 1 year span. When there is a huge cost bump in a month from a year ago, and that bump falls off the moving average as time passes. So the "change" appears better. In actuality, we are still saddled with that huge cost increase today.

The fact is that the cost of living is way higher now than a year ago. Sure, one can hand pick an example of things that are not still up (typ obsolete technology), but everything else is way up. Food (meat, pop, bread, fruits, grains, etc), energy, insurance, hard goods, cars, labor, water, clothing... 99% of things cost a lot more now. Not 2% more (like prior to JB), many are 10% to 200% more.

Even if the inflation number goes to zero... all that says is that things are still way more expensive today than a year ago.

[Stu from NYC]

Originally Posted by Maker

Is that a weird fantasy world math? Name the widget. Something technology based? Obsolete today because something newer was created?

The inflation numbers are published monthly, for a 1 year span. When there is a huge cost bump in a month from a year ago, and that bump falls off the moving average as time passes. So the "change" appears better. In actuality, we are still saddled with that huge cost increase today.

The fact is that the cost of living is way higher now than a year ago. Sure, one can hand pick an example of things that are not still up (typ obsolete technology), but everything else is way up. Food (meat, pop, bread, fruits, grains, etc), energy, insurance, hard goods, cars, labor, water, clothing... 99% of things cost a lot more now. Not 2% more (like prior to JB), many are 10% to 200% more.

Even if the inflation number goes to zero... all that says is that things are still way more expensive today than a year ago.

Right you are

[jimbomaybe]

Originally Posted by OrangeBlossomBaby

Yup. Gas was $2.94 this morning at BJ's, which is where I get my gas. That's 4 cents lower than it was a week ago. It was $2.98 for around a month. It was consistently over $3.00 before that.

As I posted in response to Michael61, the *price* that you pay as a customer, when inflation rates drop, is up to the seller. They're getting things cheaper, it's up to them to decide whether or not to reduce their retail price keep the higher margins.

HUH prices didn't drop , they did not increase as much as previously, some commodities have dropped lowering overall inflation

[oldtimes]

Originally Posted by OrangeBlossomBaby

Inflation was as high as 9.1% nationwide a year ago. We were still recovering from global shut-downs post-pandemic, restoring jobs lost, getting manufacturers back on track, and a bunch of other stuff that's political so I won't detail it here but - politics certainly played some part.

The good news, is that the inflation rate has been in decline for the past 12 months, consecutively, and hit 3% as of the end of June.

So we should be happy prices are still going up but just not as much?

[mbene]

Originally Posted by MrFlorida

Have you been to the gas station or the food store recently ?

Search oil companies record profits and you'll know why gas prices are high.

[Michael 61]

[QUOTE=OrangeBlossomBaby;2234539

As I posted in response to Michael61, the *price* that you pay as a customer, when inflation rates drop, is up to the seller. They're getting things cheaper, it's up to them to decide whether or not to reduce their retail price keep the higher margins.[/QUOTE]

Wrong Michael - I think you meant Michael G - There are two of us Michael’s here 😀

[OrangeBlossomBaby]

Originally Posted by oldtimes

So we should be happy prices are still going up but just not as much?

With very few exceptions, inflation has ALWAYS existed. There's only been a scant handful of years in the past 50 years, when the inflation rate was at a negative. Prices go up. That's just how society works. If you want to eliminate the chance of inflation, you'll need to switch to communism. I'm guessing no one here wants to do that.

Prices are currently up because companies know that you'll pay what they charge for what they're selling. They were up at a much higher rate in the past year because of supply chain issues, among other things. Most of those other things and the supply chain issues are resolved, or resolving. And so the rate has dropped back down.

If prices are still up, it's not because of inflation. It's because of greed. COSTS are down. That's why I can get my gallon of gas for $2.98, and why people getting gas on 466 are paying $3.39.

Oh and to whoever was all upset about it being $3.49 - I was just there today, it's $3.39 at the Circle K by Southern Trace. If you have their payment card thing, it's $3.29.

[Decadeofdave]

That's 9% +3%, if the latest reading was 0% we are stuck at the cumulative level.

[shut the front door]

The attempt at a political post has failed. We are and have been in a recession. You don't get to change the definition just because you caused it.

[Rainger99]

Originally Posted by OrangeBlossomBaby

So - here's how it works:

Widgets were invented 10 years ago, and were $1 each.

Last year, you needed a widget. Last year, widgets cost $9 each.

This year, the same widget is $3.

Yes - it's up from when it first came out on the market. But it's much less than it was last year.

I think your math is wrong. If an item cost $100 two years ago and went up 9% the first year, it would cost $109 in 2022. If inflation goes up 3% the next year, the price should be about $112.27. The price did not go down.

Sort of like compound interest!

[shaw8700@outlook.com]

Originally Posted by OrangeBlossomBaby

I don't live near 466. I live near 441, and all along 441, the prices are in the $3.30's.

The price of gas is based on - whatever the oil company wants to charge. If you don't like paying $3.49/gallon, drive a mile out of your way and pay $3.37/gallon. Or drive three miles out of your way and get it for $2.94/gallon.

People are willing to pay $3.49/gallon, and so - that's what they'll be charged. Such is the nature of free enterprise and a free market.

But you are forgetting about the rent they have to pay. The ones located closer to The Villages pay higher rent than the ones out in the country. Same goes for taxes and insurance.

(I have this same argument all the time with my husband)

[shut the front door]

Originally Posted by shaw8700@outlook.com

But you are forgetting about the rent they have to pay. The ones located closer to The Villages pay higher rent than the ones out in the country. Same goes for taxes and insurance.

(I have this same argument all the time with my husband)

The economist seems to be forgetting that we were under $2.25 a gallon when we were energy independent. But that doesn't fit the narrative.

[npwalters]

[QUOTE=OrangeBlossomBaby;2234569]So - here's how it works:

Widgets were invented 10 years ago, and were $1 each.

Last year, you needed a widget. Last year, widgets cost $9 each.

This year, the same widget is $3.

Yes - it's up from when it first came out on the market. But it's much less than it was last year.[/QUOTE

No here is how it works. 3 years ago it cost $1.00. 2 years ago it cost $1.10. 1 year ago it cost $ 1.22. This year the rate of inflation has slowed so it cost $1.28.

[Chi-Town]

I still get a charge of of those that are fixated on higher gasoline prices. A reminder that it is supply and demand. During the covid years demand was very low and $2.29 was common. Compare it to the demand now.

[Mleeja]

Originally Posted by OrangeBlossomBaby

So - here's how it works:

Widgets were invented 10 years ago, and were $1 each.

Last year, you needed a widget. Last year, widgets cost $9 each.

This year, the same widget is $3.

Yes - it's up from when it first came out on the market. But it's much less than it was last year.

No, here is how it works.
In July 2021 the widget was $1.00. Inflation from July 2021 to July 2022 was 9%. The widget now cost $1.09. Inflation from July 2022 to July 2023 is 3%. The widget now cost $1.1227 The cost is still going up, just not as fast.