Latest Inflation Numbers and Discussion

[aja8888]

May just came in at 8.6% and here is a nice and tidy recap of all the measured categories with charts.

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Raging inflation. The costs of services continued to spike in May, which has been the thing to watch for months because it’s where consumers spend most of their money, and it’s unrelated to “transitory” spikes in commodities. This is where inflation is getting entrenched and will be hard and painful to dislodge, and it’s now front and center. Costs of gasoline and natural gas blew out; the cost of food spiked by over 10%, while inflation in used vehicles resumed their spike, after three months of declines, and new vehicle prices continued to surge. I said a few days ago, while observing the reinvigorated spike in gasoline and diesel prices, “Inflation not in the mood of peaking yet,” and that’s what we’re seeing, but for reasons beyond gasoline. The headline Consumer Price Index (CPI-U), released today by the Bureau of Labor Statistics, spiked on a month-to-month basis by 1.0% in May, the worst red-hot month-to-month spike in this entire red-hot inflation cycle, with no sign of peaking. Year-over-year, CPI spiked by 8.6%, the worst since 1981. And the Fed is going to have a field day with its rate hikes:

https://wolfstreet.com/2022/06/10/fa...r-goes-whoosh/

[Chuckanut]

The Core inflation rate (for those of you who don't eat and don't require the use of energy) was only about 6%.

So the key to bringing down inflation is to stop eating, stop using energy to control your home's climate, commute, heat water for bathing, cooking, etc. Wait if you aren't eating you probably aren't cooking. That's a two-fer. Lucky you.

[Car-Guy]

Not surprising at all... We are all seeing significantly higher prices everywhere on everything... Scary to think about the impact on retired folks (or anyone for that matter) on fixed incomes and/or limited assets.

This could get serious for a lot of folks. Heck, at this time it's just news headlines for me, but it could get bad enough or last long enough to make me feel it.

[aja8888]

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Originally Posted by Chuckanut The Core inflation rate (for those of you who don't eat and don't require the use of energy) was only about 6%. So the key to bringing down inflation is to stop eating, stop using energy to control your home's climate, commute, heat water for bathing, cooking, etc. Wait if you aren't eating you probably aren't cooking. That's a two-fer. Lucky you.

I'll get DW right on the things you mention above. I bet we could go a week without eating, but I'l still have to feed the dog, unless he gets his game in gear and catches a squirrel or two. It's also not that hot here (100+ F) so no more A/C (can open windows when needed).

[GenXguy]

8.6% sounds bad enough, but that is actually low compared to what I'm seeing in the real world for my cost increases while trying to cut back wherever I can.

[aja8888]

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Originally Posted by GenXguy 8.6% sounds bad enough, but that is actually low compared to what I'm seeing in the real world for my cost increases while trying to cut back wherever I can.

Everyone I know is seeing very high prices. Don't forget, the CPI numbers are massaged and are weighted.

[NW-Bound]

Quote:

Originally Posted by Chuckanut The Core inflation rate (for those of you who don't eat and don't require the use of energy) was only about 6%. So the key to bringing down inflation is to stop eating, stop using energy to control your home's climate, commute, heat water for bathing, cooking, etc. Wait if you aren't eating you probably aren't cooking. That's a two-fer. Lucky you.

Well, remember the warning from NERC (North American Electric Reliability Corporation) about possible rolling blackouts this summer?

There's a silver lining for us. No worry about high cost of energy, because we may not get any!

[Montecfo]

I found the numbers disappointing after showing some early signs of peaking previously.

And now further attempts to punish Russia currently under discussion will make things worse, including an oil spike to $200 a barrel, some say.

That would definitely slow the economy, especially with higher interest rates.

It seems it is becoming a slog.

[copyright1997reloaded]

Are we having fun yet?

[aja8888]

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Originally Posted by copyright1997reloaded Are we having fun yet?

I just got back from getting groceries. No fun yet. Gas station this weekend and no fun there either!

[Car-Guy]

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Originally Posted by NW-Bound There's a silver lining for us. No worry about high cost of energy, because we may not get any!

Well on the positive side, the last person out of the building won't need to remember to turn off the lights anymore.

[NW-Bound]

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Originally Posted by Car-Guy Well on the positive side, the last person out of the building won't need to remember to turn off the lights anymore.

Alright!

And about water shortage, though it's not because of inflation but the drought, any day now, homeowners in the West will receive a bill of $0 for water, with an explanation: "Due to no water having been delivered, there's no charge for last month".

[aja8888]

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Originally Posted by NW-Bound Alright! And about water shortage, though it's not because of inflation but the drought, any day now, homeowners in the West will receive a bill of $0 for water, with an explanation: "Due to no water having been delivered, there's no charge for last month".

They will still have the service fee!

[NW-Bound]

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Originally Posted by aja8888 They will still have the service fee!

The city plumbing is still intact, is it not? So, of course you still have to pay certain fees.

It's the same when you have rolling blackouts. The wires don't carry electric juice, but if the power poles are still standing, the service charge has to stay.

[unclemick]

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Originally Posted by copyright1997reloaded Are we having fun yet?

Actually yes. But I kinda miss the 70's and early 80's when I was 'younger'.

The bad news back then was that evil curse - 'WORK!!!'

Grin

Heh heh heh - ER'd since 1993. It hasn't been boring.

[copyright1997reloaded]

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Originally Posted by unclemick Actually yes. But I kinda miss the 70's and early 80's when I was 'younger'. The bad news back then was that evil curse - 'WORK!!!' Grin Heh heh heh - ER'd since 1993. It hasn't been boring.

Same.

I started my career (after college) in 1978. It seems like we are back in those times. But as quite a few have mentioned it was a great time, as we were young and regardless of what was going on were likely having fun.

Fast forward to now: I think a good movie to re-watch over the weekend is The Big Short.

[GenXguy]

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Originally Posted by NW-Bound Well, remember the warning from NERC (North American Electric Reliability Corporation) about possible rolling blackouts this summer? There's a silver lining for us. No worry about high cost of energy, because we may not get any!

Sadly, half my electrical bill is just being attached to the grid, even if I don't use any electricity.

[madatrub]

Silver linings? Sans Energy and Food, inflation has looked as if it's peaked.

[ShokWaveRider]

Notice how Gas prices are sky high and rising but funny how there are no shortages. I am sure the oil companies and refineries are loving it.

[NW-Bound]

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Originally Posted by GenXguy Sadly, half my electrical bill is just being attached to the grid, even if I don't use any electricity.

Up in my 2nd home, my bill is usually about $41-42. Out of that total, $31 is the fixed charge. The only thing drawing power is the fridge.

The fixed charge in my metropolitan home is lower at $20.

I think the difference in the fixed charges is due to the population density. At the high-country boondocks home, houses are spaced out and there's weather hazard in the winter that can knock out utility poles.