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INFLATION RATE

If you ask the government what the inflation rate is they will tell you it’s 3.4 percent. Of course food and energy prices are not included in the calculations and anyone who actually goes to a grocery store after filling up their tank could have told you that. I spent fifty years in the printing industry before retiring and then reentering the workforce in retail.

I spend everyday checking out those making purchases. I see the struggles of people trying to make purchases for essentials while counting out coins hoping to have enough to make the purchase. Food prices and energy pieces are connected and I will explain.

Buying habits have changed over the last few years with more concentration going to convenience foods that can be taken from the freezer and put directly into the microwave. To meet that consumer demand stores who sell food had added additional freezers and coolers. These additional refrigeration units have added to their already growing energy bills, which of course has to be passed to consumers.

Petroleum prices have an additional effect on prices in the form of packaging. Plastics and other synthetics are produced from petroleum and every petroleum price increase affects the prices of every plastic bottle, bag and blister pack. When that is added to an increase in shoplifting, which is at its highest level ever you have an overall increase in prices. .
Well said. The Biden administration is quick to point out - hey, prices remained stable for the last two weeks. Inflation is under control 🙄
Reason10 · 61-69, M
@BizSuitStacy The Biden crime syndicate CREATED the inflation we're seeing now. It's NOT under any control. As long as the BideNazis continue to send out stimulus checks and borrow trillions and trillions more (causing trillions more dollars to have to be printed) there will be inflation.
It's about M1,boys and girls.
@Reason10 yep...it all starts with the money supply.

The basement dummy did it again two days ago. Claimed there was no inflation in May.


Easily proven not to be true. And there's no context behind the statement. Is he yapping about the month of May, as in a 31 day period, or is he suggesting May of 2023 compared to May of 2024. In both cases, there was inflation...and that's on top of the price increases since he took office.
Reason10 · 61-69, M
Remember, most people do not even know the DEFINITION of "Inflation." And people were REALLY ignorant of that definition not that long ago (Example: The Ford Administration had buttons made that said WIN.Whip Inflation Now. There were commercials that blamed CONSUMERS for inflation, calling them piggy. That's how ignorant the country was back then, and it remained ignorant through four years of the Carter disaster.)

Inflation is TOO MANY DOLLARS CHASING TOO FEW GOODS. Inflation can ONLY be created by GOVERNMENT, by flooding the M1 market with too many printed dollars. Unelect Joe did that at record levels with those stimulus checks. And the effect was instant. Yes, it didn't help that he raped the domestic energy industry and caused the price of fuel to skyrocket. But remember, inflation is a monetary problem.

Wanna know what caused the FIRST gasoline shocks at the pump, back around the early Seventies? (Probably there's no one here old enough to remember having to wait in long gas lines,while a LYING government tried to tell us there was a fuel shortage.)

Richard Nixon had taken the world off the Bretton Woods gold standard. The OPEC nations warned him not to do this, because ALL oil is traded ONLY with US dollars. The US dollar is the reserve currency of the world. (And the reason why Americans aren't paying $10 a gallon for gasoline like most European countries.)

Nixon was the first, and what he did was a disaster. In fact, his was the most LIBERAL presidency in history. Adolf Obama would KILL to have as LIBERAL a record as Nixon.
Ynotisay · M
Good comment. But just to toss it out there the CPI has seen a dramatic drop over the past two years. Have to go back to the 50's to see this kind of drop. And yeah. Many are struggling but, on paper at least, wages are rising faster than prices. What you did accurately point out is the minutiae of pricing. There's SO much that goes in to it. People don't think of the plastic it takes to shrink wrap something. Or how global events and drought impact wheat prices. And on and on. I think the supply chain breakdown around Covid might have opened some eyes. It's incredibly complex. But as consumers we usually don't think about those things when we're at the grocery store.

But what isn't complex is C-suite salaries increasing more than three times that of the median worker over the past year. And overall wealth disparity isn't a complex process either.

What I will never, ever understand is that the ONE issue where most every American could come together with a shared "enemy" it would be wealth disparity. The very richest are controlling the lives of hundreds of millions of people yet some have been systematically trained to not only forgive it - but support it. All it take is cries of Socialism, Marxism, Communism or any of the 'ism's" and people will continue to kiss the hand that beats them.
Reason10 · 61-69, M
@Ynotisay Typical CLASS ENVY. Gee, When will you Marxists get a clue?
Wealth disparity is basically MARKET ECONOMICS. A hospital janitor is not worth as much as a doctor who performs open heart surgery. The janitor might live in a mobile home and the doctor will live in a mansion. That's just due to each man's CHOICES.

In America, you are paid what you are worth, PERIOD.
Ynotisay · M
@Reason10 Simplistic, immature thinking. Not a fan.
And Marxist? I don't think you even know what a Marxist really is. It's just one of those "ist" words that's fed to the malleable and they lap it up. And your comment is the result of a systematic campaign to keep people down. It would be cute if it wasn't so sad.
Picklebobble2 · 56-60, M
In the UK retail pricing, especially that for food, has several contributory factors.

1. The rising price of fuel.
2. The fact two successive harvests have been affected by poor weather.
3. War in Ukraine. Where many grain exports come to Europe from.
4. Restrictions and tarrif changes from the EU into the UK and the added associated costs.
5. Profiteering from many businesses eager to make up for losses either from covid when stores were closed. Or taking advantage of increases in gas; electricity and local council taxation to ensure they have a profit margin that ensures the business survives.
Picklebobble2 · 56-60, M
@anythingoes477 Absolutely !
The UK circumstances are slightly different but not unique !
Same goes for the U.S.
Everyone stressed by exactly the same issue.

It's election season for both the U.S. and UK and sadly those with no care or understanding for anything other than wanting a seat at the top table, are pushing this "It's the other guys fault !"

Politics has failed us both
Reason10 · 61-69, M
@anythingoes477 @anythingoes477 That is an uneducated LIE,and one the BideNazis have been telling to justify Unelected Joe's RECORD WORST ECONOMY IN HISTORY. There is no such thing as a global inflation because THERE IS NO SUCH THING AS A GLOBAL CURRENCY. (Even the Eurotrash couldn't pull that off, not with movements like Brexit underway.)

INFLATION IS A MONETARY PROBLEM. It is TOO MANY DOLLARS CHASING TOO FEW GOODS. It is excessive government SPENDING which floods the M1 markets,making the value and purchasing power of the dollar lower and lower

https://mises.org/mises-daily/defining-inflation
Similarly, the essence of inflation is not a general rise in prices but an increase in the supply of money, which in turns sets in motion a general increase in the prices of goods and services.

https://www.heritage.org/budget-and-spending/heritage-explains/the-real-story-behind-inflation
Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”

From the greatest economists of all time. The truth.
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TexChik · F
You asked the Government...for an honest answer? 😉

How have you been?
lasergraph · 70-79, M
@TexChik I didn't really ask but I know their canned answers. I am doing well.
4meAndyou · F
3.4% is the rate of inflation over LAST year's rate. BizsuitStacy found an awesome graph somewhere which actually shows the inflation rate of goods since 2020.

People on social security received an 8.5% cost of living increase, but the cost of food has gone up almost 25% in some cases.
lasergraph · 70-79, M
@4meAndyou reminds me of the Carter years of the late 80s. I had a bank CD that paid 11.5% but that didn't keep up with inflation rate. Energy cost drove inflation then too.
4meAndyou · F
@lasergraph Biden is CAUSING this inflation. His Green New Deal costs 93 trillion dollars which we don't have. He is literally PRINTING money...like Venezuela.
Reason10 · 61-69, M
@4meAndyou EXACTLY
NatureGuy77 · 51-55, M
Stop making sense.
It’s all greedy businesses right? And those business all of a sudden got greedy in the last 3 years. Weird I know. That’s the message we’re sticking to it.
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lasergraph · 70-79, M
@carpediem The comment was sarcasm in agreement to the comment above it.
carpediem · 61-69, M
@lasergraph Gotcha. My apologies and thanks for the clarification.
Tastyfrzz · 61-69, M
As i have now entered the realm of the retired i certainly hope that inflation slows. Unless my feet and knee pain decreases i don't think ill be doing much work anymore.
Food and energy prices are included in the inflationary rate.
Ynotisay · M
@anythingoes477 I think there's two formulas that are used. Food and energy is part of the Consumer Price Index which revolves around urban consumers and spending. The Personal Consumption Expenditure doesn't include those, because they're volatile, but covers all expenditures by consumers wherever they are. Federal Reserve leans more on the PCE. They used to be very similar but that's changed.
@Ynotisay To be honest i doubt inflation is ever under 3% again. The two biggest things hilding it in the 3% range is housing and inflatied vehicles prices. Both are driven by supply and demand....and neither will come down enough anytime soon to ever see 2% again and it dont matter who is in the W.H. in fact if trump wins it will be back in the 6% range or higher because his plan is to hit us again with tariffs....up to 40% on some items from certain countries this time.....and we pay that increase on all we will buy....not the country being tariffed. That lie of his evaporated in about a week when people realized THEY were paying 25% more than they used too for certain items. Not Mexico or China. Tariffs is what started the inflation we have now. With trumps plan we will go back to where we werre in 2022...and higher. Then 3.2% will look good.

Prediction.....it will take YEARS for inflation to ever go below 3% again. If it ever does. Remember i said this
Ynotisay · M
@anythingoes477 Maybe. The PCE, which is what the Feds use, was well below 3 percent through Q's 2,3 and 4 last year. It climbed a bit but it's pretty much at an historical average now. Food and energy are well below 3 percent per the CPI over the past 12 months. Personally, I have no doubt it'll drop. History shows that. It's fluid. But I was around when it about 13 percent. But I think you are right if Trump returns to office. He's going to punish citizens and nations. All it takes is for him to determine a country is an 'enemy' that poses a threat and that's that.

 
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