Inflation Redux
I wrote an entire diary about inflation way back in 2016. At that time, I cited, “You might be surprised to find that last year’s inflation was only 0.7%.” The 2015 Social Security Cost-Of-Living adjustment was 0.0! Still, I felt that the official statistics understated inflation for actual life experience.
Here we are in 2021 and inflation is on everyone’s mind. Google search determined that I discuss it often on my KTKs, especially this one, in which I discussed the inflation of real estate prices.
The major dichotomy nowadays is: a) inflation is serious and growing, and will be baked into our reality. b) inflation is temporary and will subside as the supply chains recover and there are no longer shortages. Time will tell which of these scenarios is correct.
As you might have seen, the government has acknowledged inflation, in that the Social Security COLA next year is 5.9 %. This is a step-up in spending power for millions of retirees. There is a labor shortage as folks leave lower-paying jobs and find better employment, or even change their lives by retiring early or seeking different paths. Articles in the paper suggest cutting spending by putting off purchases, not good for the economy, actually.
I’ve been experiencing inflation, as have many folks, in terms of food prices. Although bacon prices have been stable, the scam is this. The one pound packages are actually only 12 ounces! Buyer beware. Car prices are incredibly high by my old standards, and that’s only if the cars are available. Some of our local restaurants have raised prices several times since the beginning of the pandemic.
Are you experiencing inflation in your daily life? In what areas does it manifest most? Do you think it will subside? Are there any advantages? There are economists that say some inflation is good, but we live on a finite planet.
As always this is an open thread. You can deflate inflation at will.
