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. .

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anythingoes477 · M

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.

anythingoes477 · M

@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.