Latest Inflation Data and report

[Freedom56]

Publix prices are the most expensive in the area. I recently purchased great T-bone Steaks and NY Strips for $4.99. All relative.

Have you shopped at "The Fresh Market" or Whole Foods Market in Florida? They make Publix look like a deep discount supermarket.

 

[Fermion]

Have you shopped at "The Fresh Market" or Whole Foods Market in Florida? They make Publix look like a deep discount supermarket.

I don't know about now but before Amazon took them over, we used to call Whole Foods, Whole Paycheck.

 

[ShokWaveRider]

Have you shopped at "The Fresh Market" or Whole Foods Market in Florida? They make Publix look like a deep discount supermarket.

I would agree, but no, I have not. They are for the trendy crowd, and those who think they should stop there so they can tell their friends they do. I walked through one once and shrugged them off. We stick to Costco, Aldi, Trader Joes and watch the weekly sales flyers for the meats.

Aldi's Chicken breasts are $1.99 a pound and we love them.

We had a freezer full of Filet Mignon we purchased a while ago from Win Dixie when the whole filet was $6.99 a pound, I bought 10 of them and cut them into steaks myself, sealed and froze them. I think we still have a few months of filets left.

 

[Turbo29]

I am simply amazed at how blasé people seem to be about 7%+ inflation. The rule of 72 tells me that in a mere 10 years, my dollars will lose half their value. Not so good. Yet, there seems to be no outrage, no concern, not much of anything.

9.58 years at 7.5% inflation to be more accurate. -- Log(2)/Log(1+0.075)


Lets try prices tripling: A mere 15.2 years. That could cut the real national debt down fast. Maybe they have a plan.


Shows why investing too much in fixed income might not be a good idea for a long retirement.

 

[ExFlyBoy5]

I would agree, but no, I have not. They are for the trendy crowd, and those who think they should stop there so they can tell their friends they do. I walked through one once and shrugged them off. We stick to Costco, Aldi, Trader Joes and watch the weekly sales flyers for the meats.

Aldi's Chicken breasts are $1.99 a pound and we love them.

We had a freezer full of Filet Mignon we purchased a while ago from Win Dixie when the whole filet was $6.99 a pound, I bought 10 of them and cut them into steaks myself, sealed and froze them. I think we still have a few months of filets left.

I was curious about Aldi prices (we shop there on occasion). I looked at the weekly ad from Downey, California and Oklahoma City, Oklahoma. Some items were more expensive in California, some items more expensive in Oklahoma. A couple of examples:

Fresh Strawberries 1.99 (OK) 0.99 (CA)
Pizza 4.49 (OK) 4.99 (CA)
Pulled Pork 5.85 (OK) 6.39 (CA)

So, I don't know that one are is more expensive than another at the same chain.

 

[daylatedollarshort]

I don't know about now but before Amazon took them over, we used to call Whole Foods, Whole Paycheck.

It really depends what you buy there. Their 365 house brands are quite competitively priced in our area, especially with 5% off for Prime members and free pick up. Purple sweet potatoes are the same price as the ethnic markets. Many other items are really expensive.

It is easy to compare prices these days with most grocery store prices online, especially with Instacart. Instacart shows which stores are displaying in store prices. Rib eye steaks in my area ranged from $5.99 on sale to around $20 a pound.

 

[ShokWaveRider]

I would debate if the current inflation numbers REALLY affect anyone here on ER. Assuming the folks are not working. I would say it really does not affect us.

The only real thing that affects us in this whole pandemic era is Air Travel. I will not be any more uncomfortable that necessary to do so. Wearing a mask for 10 - 13 hours is not acceptable at all. Worrying about others who are spreading covid is not acceptable either.

 

[Turbo29]

I would debate if the current inflation numbers REALLY affect anyone here on ER. Assuming the folks are not working. I would say it really does not affect us.

So, food items that I buy at Costco that were $9.99 and are now $11.49 or were $11.99 and now $14.99 or $12.99 and are now $15.99 don't affect me? Good to know that I was imagining the whole thing when my bill was higher.

 

[ExFlyBoy5]

I would debate if the current inflation numbers REALLY affect anyone here on ER. Assuming the folks are not working. I would say it really does not affect us.

That's a pretty big assumption, don't you think? I mean there are 169 members and 1,033 guests on ER at this very moment.

 

[Magus]

Here is a dose of reality. Two weekly ads for rib steak from two large supermarket chains: Publix in Florida and Stater Brothers in California.

The price for rib steaks (bone in and on sale this past week):

$6.99 at Stater Bros in Los Angeles County California
$9.99 at Publix in Palm beach County Florida

Price difference: 42.9%

There prices are similar at Vons/Safeway in California (another large supermarket chain).

We have residences on both coasts and have noticed a significant difference in food costs between Florida and California since 2011 when we purchased our condo in Florida.

I could go on and on about the price differences between Florida and California. Beer and wine are significantly less expensive in California. There is a much better selection of produce in California than Florida and at much better prices. Milk and cheese are about 30-40% less expensive in California. Our perspective is not from HQ offices but the consumer who actually purchases these items.

Sigh, you do realize there is a huge difference in quality in meat between the Publix' listed Choice (top 8% of steaks nationwide with terrific marbling) and the Slater one - which isn't even listed as even Select so there is no telling what grade it is (likely standard, which is 2 grades below)? You are basically comparing a Chevy to a BMW in price.

Steak grades are Prime, Choice, Select, Standard, commercial, utility, cutter and canner. Most nicer grocery stores serve select. Lower tier grocery stores standard. Choice is higher grade and Prime is usually reserved for steakhouses although not exclusively (costco sometimes carries it for example)

Trust me when I say prices are comparable in Florida and California. You can cherry pick anything you want but the large data set shows its simply not the case. If it truly was the case, you'd see way way more grocery store firms in Florida as you'd be selling 40% higher price with 30% lower cost than in California and given the typical grocery chain makes 2%, that would be a massive difference.

PS I have an uncle that lives in SE Florida and shops at Winn Dixie and swears FLorida grocery is way cheaper than in NC - its not true - in fact FL is about 3-5% higher than in NC. You also have to keep in mind a typical grocery store carries over 20k items you have to compare against.

 

[Aerides]

Here is a dose of reality. Two weekly ads for rib steak from two large supermarket chains: Publix in Florida and Stater Brothers in California.

The price for rib steaks (bone in and on sale this past week):

$6.99 at Stater Bros in Los Angeles County California
$9.99 at Publix in Palm beach County Florida

Price difference: 42.9%

There prices are similar at Vons/Safeway in California (another large supermarket chain).

That's not inflation - that's normal Publix. Their meats are always more expensive than they deserve. I live in PBC, and I usually buy meat at Costco or Fresh Market, where the cuts are both better and usually cheaper.

Publix Lamb chops have been $24.99 for years now, $12 at Costco, and $20 at Freshmarket.

 

[Fermion]

Those forum members trying to buy a car, build a house/have a house built, or doing a major remodel, are definitely being affected.

 

[CaptTom]

I would debate if the current inflation numbers REALLY affect anyone here on ER. Assuming the folks are not working. I would say it really does not affect us.

I'll just point out that some of us are on FIXED pensions.

Also, SS increases only by the "official" rate of inflation, which from what I've seen is a fraction of the increase we're actually paying in the supermarket, for housing, utilities, vehicles, etc.

For the record, I did factor inflation into my retirement plan, and I've been very fortunate that it's been as low as it has for the first five years of my retirement. I'm way ahead on SOR. But it certainly does "affect" me.

 

[ShokWaveRider]

I guess what I meant was, would one's standard of living change that much if one's monthly costs went up ~$100 for a while?

And yes, we are also on a fixed income. In fact, we only get DW's SS as I am waiting till 70 for mine. We are far from being as well off as some on this site. But our quality of life has not changed with the current increases.

 

[Freedom56]

That's not inflation - that's normal Publix. Their meats are always more expensive than they deserve. I live in PBC, and I usually buy meat at Costco or Fresh Market, where the cuts are both better and usually cheaper.

Publix Lamb chops have been $24.99 for years now, $12 at Costco, and $20 at Freshmarket.

We buy at Costco also. In my original comment I stated that prices are higher in PBC Florida versus LAC California. This is based on living in both counties since 2011 when we bought our condo in PBC during the last Florida real estate crash. Prices at Costco for fresh meat, fish, dairy and produce are lower in California than Florida. As for beer and wine, there is no comparison. The price and selection at Costco stores in California are far better and prices much lower. The notion that grocery prices are the same throughout the country is just wrong. It's all about supply and demand and the proximity of local suppliers to the food distribution system. Products are priced according to what the market will bear. The notion that Florida is a LCOL area is no longer true especially in the coastal areas of Palm Beach, Broward, and Dade counties.

 

[Freedom56]

I guess what I meant was, would one's standard of living change that much if one's monthly costs went up ~$100 for a while?

Not for us. Our monthly expense for maintaining our condo (property tax, condo fees, utilities, insurance) has gone up about $652 per month since 2011 and that hasn't impacted us. Most people adapt their spending habits.

 

[Chuckanut]

So, food items that I buy at Costco that were $9.99 and are now $11.49 or were $11.99 and now $14.99 or $12.99 and are now $15.99 don't affect me? Good to know that I was imagining the whole thing when my bill was higher.

I'm glad you realize it's all a fig-newton of your imagination. By the way, the price of Fig Newton cookies is also up. Imagine that!

 

[JoeWras]

I'll just point out that some of us are on FIXED pensions.

I left Megacorp in 1995, and always joked that my fixed pension (about $300 per month) would be worth a round of golf in 2026 at age 62.

Then we went into malaise and great recession and what not, and suddenly, it seemed like maybe I'd get 2 rounds of golf and a dinner with DW!

Now this happens, and I'm down to golf + dinner, at least at the start. Eventually, probably only one or the other.

 

[MichaelB]

As the saying goes, you can run but you can’t hide. Inflation will affect us all, but not at the same time.

It takes time to wind its way through the economy, and its path is volatile. As final consumers we are constantly changing our spending habits in response, and may not feel the pinch so deeply right away.

Wages are sticky, though, so as inflation works its way into the cost of labor, especially at the low end, it feeds inflation in two ways. First, by increasing the cost of doing business, and second, by giving the working class more income to spend.

It takes a few years for inflation to spread through the economy, and it will do so unevenly. So the real question is not “have we felt this inflation? but “when will it reach us, and how bad will it get?”

If history is a guide, the price increases we are seeing will stick and it’ll take a few years to bring the rate of inflation back to its previous levels. Wages and salaries will rise to compensate and remain at the higher levels, and real assets will also hold their value. Fixed incomes that are not indexed will suffer permanent loss of purchasing power.

 

[daylatedollarshort]

Our modest pensions are fixed, but we intentionally offset them with a fixed rate mortgage, which we refinanced last year when rates dropped. Pensions stayed the same but the mortgage interest went down so that worked out. Our general annual expenses subject to high inflation are well under our combined TIPS ladder and Social Security income, which are both inflation indexed, with the TIPS income higher than CPI inflation because they were bought with positive yields.

We've been a fan of Bobcat2's advice on Bogleheads about asset matching since we first retired, and it seems to be working out - Matching strategy - Bogleheads.

 

[38Chevy454]

As a snowbirding FL visitor (east coast by Cape Canaveral), I can say that groceries are more expensive here than at home in Cincinnati, which is the corp home of Kroger. Where I am at here in Fl there is Aldi, WalMart, Publix and Winn-Dixie. I kind of rank them in that order as for prices. Back home I would rank it as Aldi, WalMart, Kroger and then the Whole Foods/Fresh Time/Dorothy Lane. Even Costco or Sam's prices here in FL seem a little higher than in OH. Although I will also concede that I have not had recent grocery shopping in OH since Dec.

I think is is logical that locality to the supply affects prices. Therefore I believe shipping costs are probably the main price difference for FL vs OH. General inflation that is affecting almost everything we buy is a different concern. General inflation is absolutely affecting more than just groceries. Go to Home Depot/Lowes/Ace Hardware and price inflation is very obvious in either location.

 

[GenXguy]

I would debate if the current inflation numbers REALLY affect anyone here on ER. Assuming the folks are not working. I would say it really does not affect us.

You must have skipped a bunch of posts.

Inflation has caused me to have to increase my expenses budget 15% to 20% despite no change in consumption. I'm already very frugal and have a lean expense budget. More detail in earlier posts about some of the increases.

And as a result of 15% to 20% increased costs, it's going to leave me with hundreds less every month for discretionary, so I'm delaying retirement at least a year because of inflation. And if it doesn't soon come back down from the very high levels I'm seeing, I might have to put off retirement yet another year.

I've seen some comments from people about home maintenance and buying cars. I always account for those in my ongoing budget with a sinking fund, so it doesn't matter that I'm not buying a new car this year or putting a new roof on my house this year. Due to the sharp increase, my sinking funds are underfunded, so I'm having to increase them to make up for the existing shortfall as well as ongoing higher costs.

I just got back from the grocery store. Something else goes up with every trip. This time, the soup I get was up 33%. I only wish I had seen the lower 7.5% inflation projected in the CPI than what I'm seeing in real world costs. And I don't believe we are going to have deflation and prices coming down on average as I've heard in the mainstream media, forums, and from politicians. If inflation drops to say 3% in a few years, that doesn't mean prices will drop, it just means they won't go up as fast as they had been.

Complicating things is that my stable value fund through work was paying 3%, and now 1.36%, so it went from beating inflation to losing big to inflation, and my CDs are earning very little, plus stocks are even taking a hit, which isn't looking good looking ahead with a series of FED interest rate hikes expected this year.

It's depressing.

 

[Koolau]

My gut says we'll all experience the current inflation differently and notice its ill effects at different times. While I've seen dozens of "little" inflationary changes over the past year, none have been dramatic (if you don't add up all the little changes.) BUT when forced to buy a washer/dryer or a used car or hire labor, it suddenly hits you that things really are way more expensive now. YMMV

 

[ShokWaveRider]

It could also be different parts of the country too. As Koolau so rightfully says, if effects folks differently. I may have made some "general" assumptions, but I would have thought those folks like us who ER'd over a decade ago would take it in their stride. It certainly does not change our Standard of living or quality of life. OK we pay a little more, but there and then we do every year. I would not consider our experiences excessive. Now saying that we do not eat out a lot at all, never have, never will unless we are traveling. We do like our takeout though, and I have not noticed any real differences there, and I would.

Our food bills for 2 folks, and we do not skimp on poor quality food, have been as follows from September 2021 to present are: $361, $406, $382, $437, $340 and $202 so far this month. This does not include grog.

Water went up $5 a month in 2022, Electricity is equal billed and was $114 in January and we are all electric with the exception of Hot water which is gas and averages $30 a month. Cable did go up by $8 a month as of this month.

Again, we see this as relatively normal for us when looking back over the last few years.

Sorry if some of you are seeing drastic increases, we are simply not. We have not been traveling so I cannot comment there. Phone and car Lease are the same and will be for the next 2 years, insurance has been fairly constant for the last 3 - 4 years.

HOA did go up a little, but no more than previous years and landscaping has not change for the last 3 years, in fact it went down a smidge.

So, I guess if effects different folks differently depending on their lifestyles. For us "So Far" it has really not been anything we are concerned about. We still have some 4.5% CDs, (till 2024), and we just roll them over, others are pretty much zero right now waiting for the FEDS to act.

Medicare did go up, as it always does and so did DW's ACA Silver plan, but again I am sure they would have gone up regardless. I do 90% of our home maintenance myself. We may need a new AC unit this year or next, that remains to be seen.

Our home value is up 100% and still going. DW did get a little increase in here SS. We do have a good Cash living expense buffer that draw from when needed.

 

[CaptTom]

I guess what I meant was, would one's standard of living change that much if one's monthly costs went up ~$100 for a while?

A few things to dissect here.

Would my standard of living change? It already has. I look at the price of something I used to buy in the supermarket and say "screw that, it's not worth that much!"

Monthly costs going up by $100? Not sure that's the figure. Could be more, could be less. I think it makes more sense to look at percentages.

...for a while? No, I don't think this is transitory. Prices rarely come down. And if they did, every pundit on every financial outlet would be screaming that the sky is falling due to deflation. (Even if everything was just going back to where it was before.)