Inflation and price of goods - will prices go back down?

[Anonymous]

Anonymous wrote:prices never go down

Home prices do

[Anonymous]

Anonymous wrote:If only wages were inflating as well!

Wages are inflating at the fastest rate in decades. https://www.atlantafed.org/chcs/wage-growth-tracker. Do we get to applaud Biden or Trump for that?

People emotionally react to the prices at the grocery store because they are the most visible indicator of inflation in their lives. I know that I saw a 12-pack of Coke at Safeway for $10.49 yesterday! However, if people here on DCUM actually sat down and figured out what they spent on everything on a year-over-year basis, they'd find out that the inflation rate is high, but not as high as they thought. The biggest chunk of spending is your housing situation, and most people here on DCUM are clearly homeowners with a fixed mortgage. When your main expense has a tiny inflationary increase due to the TI of PITI, that really mutes the overall personal inflation rate.

That said, I do feel for the renters out there.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If only wages were inflating as well!

Wages are inflating at the fastest rate in decades. https://www.atlantafed.org/chcs/wage-growth-tracker. Do we get to applaud Biden or Trump for that?

People emotionally react to the prices at the grocery store because they are the most visible indicator of inflation in their lives. I know that I saw a 12-pack of Coke at Safeway for $10.49 yesterday! However, if people here on DCUM actually sat down and figured out what they spent on everything on a year-over-year basis, they'd find out that the inflation rate is high, but not as high as they thought. The biggest chunk of spending is your housing situation, and most people here on DCUM are clearly homeowners with a fixed mortgage. When your main expense has a tiny inflationary increase due to the TI of PITI, that really mutes the overall personal inflation rate.

That said, I do feel for the renters out there.

Bullshit. First, the "T" in PITI has jumped - and will jump - by a huge amount for a lot of people. And second, all other costs of home ownership are way up - utilities are way up; repairs and renovation costs are through the roof. Locking in a low mortgage helps, but everything else is way up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If only wages were inflating as well!

Wages are inflating at the fastest rate in decades. https://www.atlantafed.org/chcs/wage-growth-tracker. Do we get to applaud Biden or Trump for that?

People emotionally react to the prices at the grocery store because they are the most visible indicator of inflation in their lives. I know that I saw a 12-pack of Coke at Safeway for $10.49 yesterday! However, if people here on DCUM actually sat down and figured out what they spent on everything on a year-over-year basis, they'd find out that the inflation rate is high, but not as high as they thought. The biggest chunk of spending is your housing situation, and most people here on DCUM are clearly homeowners with a fixed mortgage. When your main expense has a tiny inflationary increase due to the TI of PITI, that really mutes the overall personal inflation rate.

That said, I do feel for the renters out there.

Someone actually making a lot of sense here for a change

[Anonymous]

I think it's more likely prices will stagnate and there will be more sales.

I have just stopped buying anything that not necessary for life, meaning I buy food and medine and pay bills, but m not buying clothes or anything optional, or anything that doesn't have to be replaced right now.

Remember as a kid in the 70s it's what my parents did for a while too. We rarely went out to eat, my parents almost never bought new clothes for themselves unless a piece of clothing they wore all the time became unwearable.

I think eventually house prices and car prices will come down.

[Anonymous]

I am totally using my 1970s homemaking tips and tricks. Bring on the casserole, the hamburger helper, the sewing repairs, reusing plastic bags, cloth napkins, hand me downs, driveway car washes, covering schoolbooks with craft paper, turning of lights for rooms you’re not in, turning down the thermostat at night, putting on a sweater (hat tip Jimmy Carter), your own kids mowing the lawn, camping vacations, shifting into neutral when driving downhill to save fuel, at home birthday parties with cakes by mom, bring it on.

[Anonymous]

Anonymous wrote:Eggs $8/dozen

And we have completely eliminated ordering food in and dining out at restaurants. It’s $50-$100 every time for the most basic things.

What kind of eggs? We are paying $3.99 for a dozen of large Giant brand eggs and less than $5 for Eggland.

[Anonymous]

Anonymous wrote:I am totally using my 1970s homemaking tips and tricks. Bring on the casserole, the hamburger helper, the sewing repairs, reusing plastic bags, cloth napkins, hand me downs, driveway car washes, covering schoolbooks with craft paper, turning of lights for rooms you’re not in, turning down the thermostat at night, putting on a sweater (hat tip Jimmy Carter), your own kids mowing the lawn, camping vacations, shifting into neutral when driving downhill to save fuel, at home birthday parties with cakes by mom, bring it on.

Agreed, but we're already doing that (plus more) and we're still much worse off than we were in 2020. Pay raises haven't kept up with inflation. I'm so upset that Powell only raised rates 25 basis points today. It feels like this administration will do everything they can to stop interest rates rising because they spent a ton and can't afford the higher interest on the debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am totally using my 1970s homemaking tips and tricks. Bring on the casserole, the hamburger helper, the sewing repairs, reusing plastic bags, cloth napkins, hand me downs, driveway car washes, covering schoolbooks with craft paper, turning of lights for rooms you’re not in, turning down the thermostat at night, putting on a sweater (hat tip Jimmy Carter), your own kids mowing the lawn, camping vacations, shifting into neutral when driving downhill to save fuel, at home birthday parties with cakes by mom, bring it on.

Agreed, but we're already doing that (plus more) and we're still much worse off than we were in 2020. Pay raises haven't kept up with inflation. I'm so upset that Powell only raised rates 25 basis points today. It feels like this administration will do everything they can to stop interest rates rising because they spent a ton and can't afford the higher interest on the debt.

The lower increase was because of fear about impact on banks who hold long-term bonds that have been devalued by lower interest rates not anything to do about spending.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am totally using my 1970s homemaking tips and tricks. Bring on the casserole, the hamburger helper, the sewing repairs, reusing plastic bags, cloth napkins, hand me downs, driveway car washes, covering schoolbooks with craft paper, turning of lights for rooms you’re not in, turning down the thermostat at night, putting on a sweater (hat tip Jimmy Carter), your own kids mowing the lawn, camping vacations, shifting into neutral when driving downhill to save fuel, at home birthday parties with cakes by mom, bring it on.

Agreed, but we're already doing that (plus more) and we're still much worse off than we were in 2020. Pay raises haven't kept up with inflation. I'm so upset that Powell only raised rates 25 basis points today. It feels like this administration will do everything they can to stop interest rates rising because they spent a ton and can't afford the higher interest on the debt.

The lower increase was because of fear about impact on banks who hold long-term bonds that have been devalued by lower interest rates not anything to do about spending.

Sounds like you bought the PR "crisis"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am totally using my 1970s homemaking tips and tricks. Bring on the casserole, the hamburger helper, the sewing repairs, reusing plastic bags, cloth napkins, hand me downs, driveway car washes, covering schoolbooks with craft paper, turning of lights for rooms you’re not in, turning down the thermostat at night, putting on a sweater (hat tip Jimmy Carter), your own kids mowing the lawn, camping vacations, shifting into neutral when driving downhill to save fuel, at home birthday parties with cakes by mom, bring it on.

Agreed, but we're already doing that (plus more) and we're still much worse off than we were in 2020. Pay raises haven't kept up with inflation. I'm so upset that Powell only raised rates 25 basis points today. It feels like this administration will do everything they can to stop interest rates rising because they spent a ton and can't afford the higher interest on the debt.

The lower increase was because of fear about impact on banks who hold long-term bonds that have been devalued by lower interest rates not anything to do about spending.

That’s right. Their only hope is to inflate it away and pay it down with increased taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am totally using my 1970s homemaking tips and tricks. Bring on the casserole, the hamburger helper, the sewing repairs, reusing plastic bags, cloth napkins, hand me downs, driveway car washes, covering schoolbooks with craft paper, turning of lights for rooms you’re not in, turning down the thermostat at night, putting on a sweater (hat tip Jimmy Carter), your own kids mowing the lawn, camping vacations, shifting into neutral when driving downhill to save fuel, at home birthday parties with cakes by mom, bring it on.

Agreed, but we're already doing that (plus more) and we're still much worse off than we were in 2020. Pay raises haven't kept up with inflation. I'm so upset that Powell only raised rates 25 basis points today. It feels like this administration will do everything they can to stop interest rates rising because they spent a ton and can't afford the higher interest on the debt.

The lower increase was because of fear about impact on banks who hold long-term bonds that have been devalued by lower interest rates not anything to do about spending.

That’s right. Their only hope is to inflate it away and pay it down with increased taxes.

No, to let them mature and buy newer higher rate bonds. How are banks getting paid by taxes? You aren't making any sense.

[Anonymous]

Anonymous wrote:Eggs $8/dozen

And we have completely eliminated ordering food in and dining out at restaurants. It’s $50-$100 every time for the most basic things.

Eggs are 2.99 at Aldi

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am totally using my 1970s homemaking tips and tricks. Bring on the casserole, the hamburger helper, the sewing repairs, reusing plastic bags, cloth napkins, hand me downs, driveway car washes, covering schoolbooks with craft paper, turning of lights for rooms you’re not in, turning down the thermostat at night, putting on a sweater (hat tip Jimmy Carter), your own kids mowing the lawn, camping vacations, shifting into neutral when driving downhill to save fuel, at home birthday parties with cakes by mom, bring it on.

Agreed, but we're already doing that (plus more) and we're still much worse off than we were in 2020. Pay raises haven't kept up with inflation. I'm so upset that Powell only raised rates 25 basis points today. It feels like this administration will do everything they can to stop interest rates rising because they spent a ton and can't afford the higher interest on the debt.

The lower increase was because of fear about impact on banks who hold long-term bonds that have been devalued by lower interest rates not anything to do about spending.

That’s right. Their only hope is to inflate it away and pay it down with increased taxes.

Congratulations to Jimmy Carter! You're no longer the POTUS with the worst economic strategy!!!

[Anonymous]

Anonymous wrote:I am totally using my 1970s homemaking tips and tricks. Bring on the casserole, the hamburger helper, the sewing repairs, reusing plastic bags, cloth napkins, hand me downs, driveway car washes, covering schoolbooks with craft paper, turning of lights for rooms you’re not in, turning down the thermostat at night, putting on a sweater (hat tip Jimmy Carter), your own kids mowing the lawn, camping vacations, shifting into neutral when driving downhill to save fuel, at home birthday parties with cakes by mom, bring it on.

I think moving back to these things is a good thing--so much less waste. Adding: keep the old kitchen and bathroom instead of renovating, gardening for fruit/veggies and as a hobby and child education, walking instead of driving when possible.