Examples of current inflation - add yours!

[Qs Laptop]

Target to lower prices on about 5,000 basic goods as inflation sends customers scrounging for deals​

Target plans to cut prices on thousands of consumer basics this summer, from diapers to milk, as inflation cuts into household budgets and more Americans pay closer attention to their spending.

The price cuts, already applied to 1,500 items, will include 5,000 food, drink and essential household goods. Target and other retailers are increasingly catering to customers who are struggling with higher prices for groceries, though inflation has begun to cool. Many have switched to private label brands sold by Target and others big retailers, which are typically less expensive than well-known brands.

Target to lower prices on about 5,000 basic goods as inflation sends customers scrounging for deals

Target plans to cut prices on thousands of consumer basics this summer, from diapers to milk, as inflation cuts into household budgets and more Americans pay closer attention to their spending. The price cuts, already applied to 1,500 items, will include 5,000 food, drink and essential...

finance.yahoo.com

 

[GenXguy]

Target to lower prices on about 5,000 basic goods as inflation sends customers scrounging for deals​

This reminds me of a while back when I heard Dollar Tree was going to lower hundreds of items back to $1. Well, I haven't seen that happen, and in fact, I just heard they are raising their prices again, instead. And some items will be $7!

 

[CaptTom]

Target plans to cut prices on thousands of consumer basics this summer, from diapers to milk, as inflation cuts into household budgets and more Americans pay closer attention to their spending.

I'm calling BS on this.

I don't often shop at Target, but I'm going out on a limb and saying they're going to do what all the other retailers do. That is, after jacking up prices as high as they dared during the inflation spike, they've discovered that they may have overshot in a some cases. I imagine that, for those products, it became apparent that customers balked at the increase and stopped buying them. For those specific items, Target will back down a little - but still far above what it was before the spike - and see if their customers will tolerate that.

 

[Gumby]

I'm calling BS on this.

I don't often shop at Target, but I'm going out on a limb and saying they're going to do what all the other retailers do. That is, after jacking up prices as high as they dared during the inflation spike, they've discovered that they may have overshot in a some cases. I imagine that, for those products, it became apparent that customers balked at the increase and stopped buying them. For those specific items, Target will back down a little - but still far above what it was before the spike - and see if their customers will tolerate that.

That is exactly how markets are supposed to work. When the price gets too high, people don't buy, and the seller lowers price until people do buy in sufficient numbers.

 

[CaptTom]

That is exactly how markets are supposed to work. When the price gets too high, people don't buy, and the seller lowers price until people do buy in sufficient numbers.

Yes. That's why it's frustrating to see and hear so many people say they pay no attention to prices, haven't changed their purchasing habits due to inflation, and generally take a "money is no object" attitude.

We vote with our wallets. Just because I can afford something, doesn't mean I'm going to let some merchant take advantage of me. If we tolerate higher prices, they'll just keep raising them.

 

[Chuckanut]

I can't blame a business for trying. As far as people not caring about the price increases, I hardly think a few people on this site are representative of the vast majority.

I remember one person who scoffed at the idea of trying to earn a piddling extra $100 of interest but selling a MM fund and buying a certain CD. That was him. Most people I know would think 15 minutes of work to earn $100 is a pretty good return for their labor.

 

[audreyh1]

Yes. That's why it's frustrating to see and hear so many people say they pay no attention to prices, haven't changed their purchasing habits due to inflation, and generally take a "money is no object" attitude.

We vote with our wallets. Just because I can afford something, doesn't mean I'm going to let some merchant take advantage of me. If we tolerate higher prices, they'll just keep raising them.

I’ve switched over to a we don’t have that much time left to enjoy the things we enjoy most attitude. DH agrees wholeheartedly. Sorry, not going to join in on the on the vote with our wallets according to some principle at this point, focused on whether some merchant is maybe taking advantage of me. There are multiple options - we choose what works best for us. We remain focused on our priorities and grateful we can still fund them (knocking on wood).

 

[audreyh1]

I remember one person who scoffed at the idea of trying to earn a piddling extra $100 of interest but selling a MM fund and buying a certain CD. That was him. Most people I know would think 15 minutes of work to earn $100 is a pretty good return for their labor.

I can understand that in terms of - how much extra personal time might that person end up spending overall chasing the extra $100 here and there. If they are only willing to spend an hour or less a week or month searching for and moving around investments then they see it in terms of their other priorities for spending that valuable (and dwindling) time. It’s no longer about return for labor.

 

[NameTaken2]

I can understand that in terms of - how much extra personal time might that person end up spending overall chasing the extra $100 here and there. If they are only willing to spend an hour or less a week or month searching for and moving around investments then they see it in terms of their other priorities for spending that valuable (and dwindling) time. It’s no longer about return for labor.

$100 here and there adds up.
If you're wealthy enough to focus your dwindling time on hedonistic pursuits vs any concern about the value of what you're paying for, that's a fortunate place to be and a personal decision.
Others, regardless of net worth, may see X hrs/wk shopping for the best value as reasonable and worthwhile.
That's also a personal decision -both are "right".

 

[CaptTom]

If you're wealthy enough to focus your dwindling time on hedonistic pursuits vs any concern about the value of what you're paying for, that's a fortunate place to be and a personal decision.

Very true. And it's also true those who can justify that decision are in the minority. I do see some who aren't in a position to BTD take that attitude, thinking they "deserve" it. Kinda sad.

And, yes, maybe I do act somewhat on principle. I have been through difficult times financially, and I don't like being taken advantage of. It doesn't help that I live in a very "BTD" town.

Anyway, to each their own.

 

[audreyh1]

$100 here and there adds up.
If you're wealthy enough to focus your dwindling time on hedonistic pursuits vs any concern about the value of what you're paying for, that's a fortunate place to be and a personal decision.
Others, regardless of net worth, may see X hrs/wk shopping for the best value as reasonable and worthwhile.
That's also a personal decision -both are "right".

You misinterpreted that I don’t look at value or shop around for buying the experiences we still want. It’s not all or nothing here. I simply said I don’t spend time worrying about merchants taking advantage and refusing to spend on a priority on that principle. I do explore my options for what we want.

On the CD I literally was talking about $100 maybe gained to shop 15 mins for a CD and understanding not wanting to spend time on that versus other uses of that time. Some people like to spend time managing their money to eke out a bit more here and there. I worked hard early on to make money management as hands off as possible for myself and as I get older I’m less and less inclined to fiddle with it and glad of the simplifications I’ve put in place.

 

[Gumby]

Yes. That's why it's frustrating to see and hear so many people say they pay no attention to prices, haven't changed their purchasing habits due to inflation, and generally take a "money is no object" attitude.

We vote with our wallets. Just because I can afford something, doesn't mean I'm going to let some merchant take advantage of me. If we tolerate higher prices, they'll just keep raising them.

The demand curve is an aggregate of all the individual demand curves of many consumers. Some people's curve is more elastic than other's. That is, some are more sensitive to changes in price than others and will more readily cut back or substitute in response to a price increase. Economists analyze behavior of the group, not the individual.

 

[Koolau]

That is exactly how markets are supposed to work. When the price gets too high, people don't buy, and the seller lowers price until people do buy in sufficient numbers.

Yeah, we all play this game. Sellers try to maximize profits and consumers do their best to maximize their own benefit. We might take it personally, but it's more a matter of the law of supply and demand.

 

[Surewhitey]

Just got our renewal on home insurance, Allstate. $1460 to over $1900...35% ouch! Def time to shop. Looked at our pay by mile and it's up too, but not as much...

One claim, 2019 on the roof. It has almost doubled since then...

 

[GenXguy]

Just got our renewal on home insurance, Allstate. $1460 to over $1900...35% ouch! Def time to shop. Looked at our pay by mile and it's up too, but not as much...

One claim, 2019 on the roof. It has almost doubled since then...

You're doing better than me. Mine through American Family has more than doubled since 2021 (103%), and I have NEVER made a claim. 31% hike in last year alone, despite hail/wind deductible doubling from $1000 to $2000 as well.

 

[Surewhitey]

You're doing better than me. Mine through American Family has more than doubled since 2021 (103%), and I have NEVER made a claim. 31% hike in last year alone, despite hail/wind deductible doubling from $1000 to $2000 as well.

Yeah, we aren't surprised as DW is in the insurance biz. She said if it's under 30%, that's the # she's seeing. She didn't even know the actual % at the time...

We called anyhow and asked if we were on the +28% plan as the past 2 years it has been exactly the same increase. He's getting together some options for reducing it (monkey-ing with the deductibles on cars & home)...

 

[Badger]

I worked hard early on to make money management as hands off as possible for myself and as I get older I’m less and less inclined to fiddle with it and glad of the simplifications I’ve put in place.

+1 As I get older I am still frugal although it isn't necessary anymore. I still screen my purchase choices for the best value and live in my modest home of 41 years that I fixed up. Money management is on autopilot except for paying utilities, insurance, taxes, and CC purchases.
I don't trust that in the future I would still be able to make good decisions. I have even gone so far as to make a list of the order of how (and which accounts) to access for living expenses. So far it looks like I will never have to rely on any "bucket" except for RMD. The majority of the will be inherited by my wife's 2 grown children for their retirement. Whether they take my advice on how to make the plan work for them I will never know. I just hope it makes their retirement more worry free.
I have seen and heard of too many seniors either getting scammed or being too generous with donations with money they need to live on themselves. Although it is possible, I would not want to be one of them.

 

[CO-guy]

Not sure if this is an example of inflation or just astronomical pricing:

One day last week I went out for tacos. Three tacos, chips and salsa, and a fountain drink came to $35 with tax and tip included ($6).

 

[Chuckanut]

Not sure if this is an example of inflation or just astronomical pricing:

One day last week I went out for tacos. Three tacos, chips and salsa, and a fountain drink came to $35 with tax and tip included ($6).

I am not surprised. Not long ago I stopped at McD’s for a quickly coffee and leg stretching break from driving. I noticed that they had Filet-O-Fish sandwiches. $6.99 each.

Clark Howard has noted signs of what he calls a Buyers Strike amongst consumers in the area of food - grocery stores and restaurants. IMO, he is correct. You find his comments in the first 5 minutes of the podcast.

05.23.24 Buyers Strike In The Grocery Aisle / Investment Property Purchase Rule

Buyers Strike In The Grocery Aisle / Investment Property Purchase Rule

clark.com

 

[momoney]

I am not surprised. Not long ago I stopped at McD’s for a quickly coffee and leg stretching break from driving. I noticed that they had Filet-O)-Fish sandwiches. $6.99 each.

Clark Howard has noted signs of what he calls a Buyers Strike amongst consumers in the area of food - grocery stores and restaurants. IMO, he is correct. You find his comments in the first 5 minutes of the podcast.

05.23.24 Buyers Strike In The Grocery Aisle / Investment Property Purchase Rule

Buyers Strike In The Grocery Aisle / Investment Property Purchase Rule

clark.com

I was always under the impression that store brands (with the exception of stores like Aldi) existed to drive up the price of name brands. Now they may exist out of necessity because the name brands are out of reach for many. $6.00 box of vanilla wafers....No thanks. That said, I have noticed some name brands on sale at better prices than what Aldi charges for it's house brands.

 

[CaptTom]

"Buyers' Strike." I like that phrase. In some areas, that describes what I'm doing pretty well. Selectively, for product lines which experienced blatantly opportunistic price increases. Snack foods, breads and soft drinks come to mind. All things I can do without, and refuse to be taken for a fool over. Plus I like making bread.

Yeah, I know, for most people money is no object for those products. Obviously the market has spoken, and those prices are what the market will bear. But just like striking workers, for me it's the principle.

There was one glimmer of hope on bread today though. Store-brand hot dog and hamburger rolls were on sale (for the holiday weekend, I assume) at exactly the price they were before the big price run-ups of the past couple of years. And not too much above what the sale prices used to be. This only proves my point that bread (or equivalent in rolls) can be profitable at a fraction of today's prices. And hardens my conviction not to be taken for a fool. So, yeah, I'll keep walking the picket line.

 

[Willers]

Just about to pay my 2nd property tax installment: 66% over last year with no changes to the home. The bright side is that our local government agencies have, at least temporarily, stopped complaining about budget shortfalls.

 

[USGrant1962]

This only proves my point that bread (or equivalent in rolls) can be profitable at a fraction of today's prices. And hardens my conviction not to be taken for a fool. So, yeah, I'll keep walking the picket line.

While I agree with the buyer strike concept and am doing some of that myself, that is not how pricing works. An individual sale of rolls doesn't have to make a profit. The profit probably comes from the chips and sodas that many people buy to go with the burger buns.

 

[Ian S]

This week, a local supermarket has 80/20 ground beef on sale for $1.99 a pound if you buy a multi-pound package. This is lower than we've seen in many years, since long before the pandemic - ground beef is kind of a staple for us and we watch its price closely. Companies have greedily fattened their bottom lines using the phony baloney inflation excuse and now have latitude to lower prices.

 

[CaptTom]

An individual sale of rolls doesn't have to make a profit.

No, of course. Probably a loss leader. But as I said the price isn't far off the former sale price, presumably also a loss leader, so I still say it's evidence that a lot of this so-called "inflation" is really just opportunistic pricing, testing to see what they can get away with.

Which makes me wonder: If we could identify and compensate for the unjustified price increases, and only count those retail products whose actual cost to produce went up, would our "observed" inflation rate match the government numbers? This would explain why so many on this forum insist that the official numbers are correct, while those of us who actually shop were seeing something very different.