Latest Inflation Data and report

aja8888 said:
Well, time may be money to you if you are still working, but us retirees seem to have a lot of FREE time. So making soup is not only a good idea, but it fills the FREE time! :D

I made 8 quarts of Texas chili last week and it filled my day.
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Good home make soup will be far healthier than the canned stuff. So subtract some dollars from your medical budget.
 
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Fermion said:
not to mention the other products needed to clean up after making a homemade soup....water and electricity needed to clean the pots, knives and cutting board, energy needed to cook the protein, paper towels for drying.

But quality of life, the homemade soup is generally better tasting and maybe lower amounts of preservatives.
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Tap water generally costs around $.004 a gallon. Newer dishwashers are very energy and water efficient, so that doesn't cost a lot to run at our house. I don't know anyone who uses paper towels to dry dishes. Our dishes air dry in the dishwasher. I make soup along with other dishes like salads and stir fries, so the cutting board and knives are out anyway. I make my soup in a thermal cooker so it only takes 5 - 10 minutes of boiling time on the stove, and the rest of the cooking is done with retained heat. If I make chicken soup, the chicken cooks in the soup, plus I put in extra chicken to cook in the soup for a different dish. Canned soup and other processed foods are almost always going to be much more expensive and less healthy than what you can make at home from scratch, especially if you price shop the ingredients. And as aja8888 pointed out, many of us already retired posters enjoy cooking and have plenty of free time to spend on making healthy meals.

A handful of big firms control processed foods and the major store chains. Farmers get 7.6 cents on the dollar (https://www.idahofb.org/news-room/posts/where-does-your-food-dollar-go/). We try not to buy a lot of processed foods from the big supermarket chains, and we really haven't seen huge increases in our grocery bills, at least not more than our SS increase has covered.
 
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GenXguy said:
Great inflation fighter? Sounds like a loser to me. Time is money, and you spend a lot more time doing that than it takes me to heat up a can of soup, for just me.
Not quite the same when you are retired. I can also make a large pot of soup with more meat and veggies in about 10 minutes then let the stove do its work. Time is not an issue.


And if you ignore the time spent, you're still not saving money. Now that the can of soup has gone up to $1.98, that's still 99 cents per serving since there's 2 servings per can. Your 6 for $10 is about $1.67 per serving, Let me clarify since you have no idea how this soup (which is so full of meat and veggies that is almost like a stew) compares with canned soup. If i was to make the soup with the same amount of ingredients and water (per serving) AND made the portion size the same as your 2 servings of canned soup then you can increase the number of servings to close to 3x. I'm guessing you are using the 14.5 oz soup with the additional can of water for the 2 servings. If it was only me then I simply have to take a few minutes to put the extra into freezer bags (a couple more pennies for the bag) for another 20 or more meals. Then all I have to do is remove from bag and microwave. plus the extra time. Time is money. I'm not seeing how that is a great inflation fighter in any way. Most of my higher spending that accounts for the 15% to 20% increased spending is not on food, anyway. I'm already quite frugal, trying to catch sales and get good deals in general, plus I spend very little on discretionary, although I was hoping to increase my discretionary allotment considerably when I retire until inflation hit so hard. I've delayed retirement for at least one more year, I can understand where you say time is money. Sorry you don't have the free time of being retired. but that won't make up for the devaluation of my investments/savings from inflation vs. what the same dollars would have bought a year or two ago. I wish it was as easy as preparing my own soup, but lol, not quite. Soup really isn't the issue is it? Finding ways to save money while improving quality of life is. This was just an example.
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Cheers!
 
Just a little comparison. Yesterday I did some research as I needed to replace our Shark Pet Perfect style Handheld Vacuum Cleaner after 12 years and 2 batteries later. Original Cost from Sears Outlet was $39 refurbished. I did some research on Amazon, eBay, Target etc., Prices were all over the map from $56 - $85. I went to Walmart and found it brand new for $44 (Not red tagged), they had 3 in stock. The new one even has an automatic function to eliminate over charging and hence battery failure, a feature the older one's lacked. So, I guess inflation is not rampant when it comes to Hand Vacuum cleaners, I am very happy. :)
 
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Badger said:
since you have no idea how this soup (which is so full of meat and veggies that is almost like a stew) compares with canned soup
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Of course I know how home made compares. Like I said a couple times already in this thread, I do make home made stews and such sometimes, which does take much longer with all the necessary shopping and prepping (not just cooking), and I don't have canned soup often.

I'm guessing you are using the 14.5 oz soup with the additional can of water for the 2 servings.
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Nah, I haven't gotten any like that. The cans are larger, not watered down, and do not require you to add water to get two servings. The servings out of the can are 1 cup each. Prior to the price increase, that would have been about 75 cents per serving.

Soup really isn't the issue is it?
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Of course it's not, and I never implied it was when I first mentioned it, and in my follow ups, I continued to say that soup was just an "example" of what shot up a lot on my last grocery trip. The real point is that it's always something else shooting causing the overall grocery budget to increase along with increases in pretty much everything else. To this point, my cell phone bill is still $6/mo. That's the only item in my budget that hasn't increased from a year ago, although I won't receive my 2021 property tax bill for a few months, I fully expect it to be up as usual, and it's my highest bill in this high property tax state, although my home maintenance sinking fund is certainly going to be the biggest increase from pre-pandemic due to such high cost increases in those types of material and labor.

Finding ways to save money while improving quality of life is.
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I think in my case, I'm saving about as much as I can because I'm already quite frugal with a lean budget, sometimes surpassing a savings rate of 80% of my gross income if you count new unspent sinking fund contributions as savings. The real problem is in the optic of this thread, which is why I posted here, in that inflation is now cutting into that savings and will require a higher retirement WR to maintain the same standard of living I was planning to have in my retirement. Even working the extra year will not close the gap. I'm an older GenXer so don't want to work much longer.
 
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Chuckanut said:
My main concern is for my children. They already have been priced out of the housing market in my area. Continue inflation that is far in excess over what they can earn on savings, just sets them back more. Frankly, I am disgusted.
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This is one of my main concerns for my kids. 15-20 years ago I bought rental property to help pay for their college so at least we are already in real estate in a high appreciating market. We are near the end of getting our last launched in the next 18-24 months.

We can always 1031 these properties into places for the kids when they settle down a little. In the mean time the first couple years out of college is hammering them with huge rent payments as they try and make their way in the world and feel the effects of inflation first hand. Our oldest is feeling this first hand and soon will be getting promoted which will give him some relief. He is realizing though he has to out run the impact of inflation as much as he can.
 
GenXguy said:
I think in my case, I'm saving about as much as I can because I'm already quite frugal with a lean budget, sometimes surpassing a savings rate of 80% of my gross income if you count new unspent sinking fund contributions as savings. The real problem is in the optic of this thread, which is why I posted here, in that inflation is now cutting into that savings and will require a higher retirement WR to maintain the same standard of living I was planning to have in my retirement. Even working the extra year will not close the gap. I'm an older GenXer so don't want to work much longer.
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Sounds like you are doing a great job of saving and living frugally! Keep up the good work and stay here and let us know how you are progressing toward retirement.:):cool:
 
Last week a 10# bag of sweet onions at Costco cost $11.49, yesterday it was $12.99. Bagels last year were 2 sleeves for $5.99, yesterday they were $7.99, 33% more.

Wagu steaks were $99/lb, we went with the small wagu corned beef. It was only $37 for 3 lbs.....not sure it was a good buy, but wife insisted we try it.

Food prices seem to be really hit hard, it must be difficult for those who spend a high % on food and dining. We are lucky its not such a big deal.
 
Chuckanut said:
The January year over year inflation rate was 7.5%. Not so good.

My [-]platinum plated solid gold[/-] bronze and pine teacher's pension has a COLA in it for which I am grateful. But, it is capped at 3% a year max. I gave up a lot to get and keep that pension and I still think the opportunity cost was worth it. Nevertheless, thank goodness for SS and my meager investments.
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Pension capped at 1% here. I’d love 3%! It was changed in 2013 from a COLA to a benefit adjustment. Contribute 9% of pay so takes a huge chunk of the 15% you are supposed to try and save. And they can take the 1% away at any time ( and have all state employees in an uproar)…wonder if they have thought of raising it with inflation up and all the excess dollars the state claims to have? Hmm…doubt it very much.
 
We always make home-made soup, money be damned. It's so much better, and it's for the quality of life.

It just happens to be cheaper, but even if more expensive, we would still do it.

And it takes a bit of time, but as we enjoy cooking and have time in retirement, it is another improvement of the quality of life.

Home-made soup rules supreme!
 
1.731982974

aja8888 said:
$4.72 per USA gallon
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= (4.72 / 0.72) / 3.785
= $A1.73 / L

Local petrol:
= $A1.77 / L
= $A1.77 / 8.9 kWh
= $A0.1988 / kWh

at 40% petrol engine efficiency:
= $A0.1988 / 0.4
= $A0.4972 / kWh useful.

Local electricity off peak:
= $A0.1995 / kWh

at 80% electrical efficiency:
= $A0.1995 / 0.8
= $A0.2494 / kWh useful.
 
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Samsung4321 said:
= (4.72 / 0.72) / 3.785
= $A1.73 / L
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$3.64/gal at most gas stations where I live here in the midwest U.S. I've heard and read it could jump up a lot more if there's an invasion overseas. Yikes. It's high enough. Fortunately, I have a short commute to work and don't use a lot of gas.
 
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Mr. Tightwad said:
The smart Californian's got rid of their exhaust spewing cars a long time ago.

And gas is at 5.50 around me.
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Great to go green, but imagine trying to charge your plug-in when the state's power grid has rolling blackouts because it doesn't have enough power to generate electricity during peak usage hours :mad:

As a fellow Californian, I'd love to trade in my gas-power cars, but not until the state can guarantee that its power grid can provide sufficient electricity to all residents at all times. Until then, I'll stick with paying $5.5/gallon---at least I'll be able to sit in my car and enjoy the AC when it's 105 outside at 3 pm in August and I can't use AC in my house because of rolling blackout :facepalm: (I'm being facetious of course)

But yeah, $5.5/gallon hurts every time I fill up---nowadays I make a point of riding my bike to run errands whenever I can: good exercise, saves the environment and saves money.
 
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Mr. Tightwad said:
The smart Californian's got rid of their exhaust spewing cars a long time ago.

And gas is at 5.50 around me.
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Stirring. But until the cost of depreciation, maintaining and fuelling a car is more than the similar costs of an alternative car then there is little financial incentive to get rid of a car, with or without exhaust.

Normalised to initial cost of 1, depreciation of a 10 year old car is:
= ~(1 - 20%)^9 - (1 - 20%)^10
= ~0.0268
= ~3% / y

First year depreciation:
= ~(1 - 20%)^0 - (1 - 20%)^1
= ~20% / y

Hanging on to and maintaining an old reliable car can make financial sense - they don't deflate in price as quickly as new cars.
 
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