Latest Inflation Numbers and Discussion

[ShokWaveRider]

Houses are the biggest shock. My parents bought a nice 2500 sq-ft lake house in the 1980s for about $23,000.

Yes, but we also have a lot more money that they had. My parents were fairly wealthy by those days' standards. 2 homes paid for, one in the UK and one in Malta in the mid 70's, a good job as an airline captain for BOAC. We have probably 20 times more NW today than they had then, so it is all relative.

 

[Koolau]

Yes, but we also have a lot more money that they had. My parents were fairly wealthy by those days' standards. 2 homes paid for, one in the UK and one in Malta in the mid 70's, a good job as an airline captain for BOAC. We have probably 20 times more NW today than they had then, so it is all relative.

Yeah, I find it difficult to adjust to the nominal prices and incomes, stated in dollars. (Not that I smoke - but parents did) I recall cigarettes at $2/carton. I think I saw prices near $100 (maybe only $90) locally now.

My dad sometimes paid as little as 16 cents/gallon for regular (leaded) gas when I was a kid. I paid $.30/gallon when I got my first car. I drove all week for $3. (Of course, I was only making $5/hour at my "professional" j*b.)

You're right that it's all relative. Still, I can't get those old numbers out of my mind. YMMV

 

[Gumby]

Yeah, I find it difficult to adjust to the nominal prices and incomes, stated in dollars. (Not that I smoke - but parents did) I recall cigarettes at $2/carton. I think I saw prices near $100 (maybe only $90) locally now.

My dad sometimes paid as little as 16 cents/gallon for regular (leaded) gas when I was a kid. I paid $.30/gallon when I got my first car. I drove all week for $3. (Of course, I was only making $5/hour at my "professional" j*b.)

You're right that it's all relative. Still, I can't get those old numbers out of my mind. YMMV

I believe that is called "anchoring bias" or "anchoring effect". Basically, it means the first/oldest information we receive changes our perception of subsequent information we receive. So we remember the prices of our youth and think inflation is rampant no matter what the BLS says.

 

[Surewhitey]

A positive sign is the 3/4" uv finished 2 sides birch plywood was only $51/sheet today. $22 / sht for 1/4"...

Got as high as $90 at the peak...

 

[jimbee]

If only we had the "will" to not let prices increase.

 

[Montecfo]

Job openings fell sharply to 8.7M in October, well below estimates and the lowest level in two and a half years. This according the the DOL's JOLTS report.

It is a sign of slackening labor demand and a slowing economy.

https://www.cnbc.com/2023/12/05/job...-below-estimate.html?__source=androidappshare

 

[JoeWras]

Yes, the only thing that sticks out like a sore thumb are vehicles... much more expensive but not outrageously so considering inflation between 1972 and now. That $3,500 for a Nova in 1972 would be ~$26,000 in today's dollars. A 2023 Chevy Malibu base model retails for $25,345 ($25,000 MSRP + $1,045 destination charge - $750 cash incentive)... and the Malibu is a much nicer car than the Nova ever was.

TVs are much better and less expensive. Ditto dishwashers and coffee brewer.

I made a mistake on the Nova. The Nova was actually $2750. This was an 8 cylinder coupe, no less. 8 cylinders in a Nova? Woah! According to the calculator, it would be about $21k.

I'm not trying to pick nits, your point still stands. I just wanted to correct the record. Picture proof below.

Also interesting was they had a Honda N600. The exact price wasn't available since it was rolled in with camping equipment and another N600. The price was $3100, so call it $1500 per N600 plus $100 for camping.

I forgot you could buy cars under $2k in 1972. Now the N600 is nothing like any Honda today. It was a very basic car. They also had a VW Super Beatle that just came in over $2k. A quick search reveals the basic Beatle was about $2k.

Sometimes it is hard to fathom these numbers until one realizes the average annual wage was $6.2k. (Source: https://www.chicagotribune.com/busi...-6fcqlpxljbasnpxqnmtkkormxm-photogallery.html)

 

[NameTaken2]

I made a mistake on the Nova. The Nova was actually $2750. This was an 8 cylinder coupe, no less. 8 cylinders in a Nova? Woah! According to the calculator, it would be about $21k.

I'm not trying to pick nits, your point still stands. I just wanted to correct the record. Picture proof below.

Also interesting was they had a Honda N600. The exact price wasn't available since it was rolled in with camping equipment and another N600. The price was $3100, so call it $1500 per N600 plus $100 for camping.

I forgot you could buy cars under $2k in 1972. Now the N600 is nothing like any Honda today. It was a very basic car. They also had a VW Super Beatle that just came in over $2k. A quick search reveals the basic Beatle was about $2k.

Sometimes it is hard to fathom these numbers until one realizes the average annual wage was $6.2k. (Source: https://www.chicagotribune.com/busi...-6fcqlpxljbasnpxqnmtkkormxm-photogallery.html)

Some prefer Paul, but I think John Lennon was the Super Beatle.

 

[acronymous]

https://www.cnbc.com/2023/12/06/new...ation-data-resulting-in-less-college-aid.html

New FAFSA model targeting an end of 2023 launch will be indexed to 2020 inflation data despite the Consolidated Appropriations Act's directive to update the index yearly.

 

[Koolau]

If only we had the "will" to not let prices increase.

That's a noble goal - especially if you also want to lose weight.

 

[Koolau]

I made a mistake on the Nova. The Nova was actually $2750. This was an 8 cylinder coupe, no less. 8 cylinders in a Nova? Woah! According to the calculator, it would be about $21k.

I'm not trying to pick nits, your point still stands. I just wanted to correct the record. Picture proof below.

Also interesting was they had a Honda N600. The exact price wasn't available since it was rolled in with camping equipment and another N600. The price was $3100, so call it $1500 per N600 plus $100 for camping.

I forgot you could buy cars under $2k in 1972. Now the N600 is nothing like any Honda today. It was a very basic car. They also had a VW Super Beatle that just came in over $2k. A quick search reveals the basic Beatle was about $2k.

Sometimes it is hard to fathom these numbers until one realizes the average annual wage was $6.2k. (Source: https://www.chicagotribune.com/busi...-6fcqlpxljbasnpxqnmtkkormxm-photogallery.html)

Yeah, I bought a Corvette for less than $5K in 1969. Of course, that was half my yearly salary! The C-8 (the way I would want it) would be 20 times as much now.

By the way, the Novas (around 70 to 72) were easily transformed into real straight-line stormers! For a few $hundred and a couple of week-end's w*rk, you could add high performance parts like cam and carbs and exhaust, adjust the springs and shocks (to make the car squat on launch) and then be the terror of the neighborhood. Those were the days.

 

[Pointby2]

Asked the DW to pick up a box of saltines. One of the cheapest snacks you could get. Not long ago, in my mind, they were 99 cents a box. She came home and had me guess how much they cost today, on sale. I figured double, like $1.79.... no, they are now $3.95 a box on sale.

 

[Tadpole]

Asked the DW to pick up a box of saltines. One of the cheapest snacks you could get. Not long ago, in my mind, they were 99 cents a box. She came home and had me guess how much they cost today, on sale. I figured double, like $1.79.... no, they are now $3.95 a box on sale.

I did a search at Fred Meyer. Nabisco are $3.99 and Kroger brand saltines are $1.89. I wonder how much brand abandonment is going on today.

 

[ShokWaveRider]

I did a search at Fred Meyer. Nabisco are $3.99 and Kroger brand saltines are $1.89. I wonder how much brand abandonment is going on today.

Walmart's are $1.74. Aldi's were $1.23 the last time I looked earlier this year.

 

[Koolau]

I did a search at Fred Meyer. Nabisco are $3.99 and Kroger brand saltines are $1.89. I wonder how much brand abandonment is going on today.

Saltines are one food product which the name brand (Nabisco) is noticeably more tasty to ME. I would likely do without saltines rather than substitute on this particular item. Just me, of course so YMMV.

 

[ShokWaveRider]

Saltines are one food product which the name brand (Nabisco) is noticeably more tasty to ME. I would likely do without saltines rather than substitute on this particular item. Just me, of course so YMMV.

You should try the Aldi one's. I liked the name brands too, but I tried Walmart's one's then Aldi's, we stayed with Aldi for the same reason.

We usually try Aldi products once, if they are as good or better than the name brands we switch. We have switched to them for a lot of staples. Here are Some examples:

Packaged Cold Cut Ham
Packaged Cheese Slices
Ketchup
Salad Dressings
Mayonnaise - A big one, DW is very picky on this.
Dish Washer Detergent
Milk
English Muffins
Ground Turkey
Ground Sausage
Chicken Breasts
Ice Cheam
Spray Canola Oil
Pizza - DW likes to heavily Augment Pizza, otherwise it is not so as good.
Packaged filled Pasta
Earl Grey Tea
Humas
Specialty Cheeses - Little choice though
Cottage Cheese
Butter
Sour Dough Bread

 

[CaptTom]

Snack foods stand out among the highest price increases during this past round of inflation. The formerly 99-cent bag of store-brand chips is now regularly on sale at closer to $3. The brand names are stupid expensive; way more than I'd be willing to pay.

I'm curious why these $1 products are now going for $1.79, $1.89 and up to $3. We're talking 79%, 89% and up to 300% increases here. This would be at least 10 times more, and for some things, 40 times more than the "official" inflation rate.

My best guess is, during the supply chain issues everything spiked. Staples had to come back down eventually, but snack food manufacturers found that the high prices did nothing to reduce demand. In short, if we're stupid enough to pay 3x as much, they'd be foolish not to sell it to us at that price. Yeah, no. I can do without chips, thanks.

 

[Chuckanut]

You should try the Aldi one's. I liked the name brands too, but I tried Walmart's one's then Aldi's, we stayed with Aldi for the same reason.

We usually try Aldi products once, if they are as good or better than the name brands we switch. We have switched to them for a lot of staples. Here are Some examples:

Packaged Cold Cut Ham
Packaged Cheese Slices
Ketchup
Salad Dressings
Mayonnaise - A big one, DW is very picky on this.
Dish Washer Detergent
Milk
English Muffins
Ground Turkey
Ground Sausage
Chicken Breasts
Ice Cheam
Spray Canola Oil
Pizza - DW likes to heavily Augment Pizza, otherwise it is not so as good.
Packaged filled Pasta
Earl Grey Tea
Humas
Specialty Cheeses - Little choice though
Cottage Cheese
Butter
Sour Dough Bread

Your post makes that green eyed monster of envy and jealousy emerge in my being. I would love to have an Aldi in my area. I check their website frequently, but so far we are still at the end of the line for any stores.

 

[Montecfo]

The Labor department's jobs reports shows the economy added 199k jobs in November, beating expectation of 190k. obs and also higher than the 150k recorded in October.

The unemployment rate declined to 3.7% from 3.9%.

The jobs figures were boosted by the end of the auto workers strike.

Average hourly wages grew at 4%, a figure in line with an cooling labor market.

The report is possibly encouraging to those hoping for a soft landing, but job creation remains on a downward trend and the wage growth figures provide an encouraging note regarding interest rates.

https://www.cnbc.com/2023/12/08/job...-3point7percent.html?__source=androidappshare

 

[COcheesehead]

Today's jobs number "included 47,000 workers returning from strikes .. Stripping out that one-off boost .. 49,000 were government jobs with a further 77,000 in health care. Excluding those non-cyclical sectors, the economy added only 26,000 jobs,

 

[Gumby]

You should try the Aldi one's.....

When I go grocery shopping, I start at Aldi's. Only if I can't get something at Aldi's do I move on to another store. I am fortunate in having four large grocery stores within a mile of my house.

 

[finnski1]

When I go grocery shopping, I start at Aldi's. Only if I can't get something at Aldi's do I move on to another store. I am fortunate in having four large grocery stores within a mile of my house.

Yes. We start at Aldi's also. Then right across the road is Hannafords. Very convenient.

 

[Northforker]

We buy our staples at ALDI except for meat. We buy most of our meat at Sam's or our local meat market. Unfortunately ALDI and Sam's are an hour away, so we try to confine the trip to monthly as much as possible.

 

[JoeWras]

Snack foods stand out among the highest price increases during this past round of inflation. The formerly 99-cent bag of store-brand chips is now regularly on sale at closer to $3. The brand names are stupid expensive; way more than I'd be willing to pay.

I'm curious why these $1 products are now going for $1.79, $1.89 and up to $3. We're talking 79%, 89% and up to 300% increases here. This would be at least 10 times more, and for some things, 40 times more than the "official" inflation rate.

My best guess is, during the supply chain issues everything spiked. Staples had to come back down eventually, but snack food manufacturers found that the high prices did nothing to reduce demand. In short, if we're stupid enough to pay 3x as much, they'd be foolish not to sell it to us at that price. Yeah, no. I can do without chips, thanks.

I think your guess is good. I would add that snack foods have a very high labor element to them. Processing is only part of it. The big part is distribution to all the little stores everywhere.

Maybe that's why WalMart's equivalent chips sell for 60% of Lay's. Tight distribution.

 

[Pointby2]

We have four Aldi's around us. One North -25 miles away. One East - 22 miles away, one West is 33 miles away and the one South is 24 miles away. We live in a doughnut hole even though we're in the middle of Orange County, CA.


Next time we're out for something else, we'll have to try them out for cheap saltines!