The Old Inflation Excuse
A pair of jeans that cost me $29.99 some 5 years ago, still costs roughly the same. A latte at Starbucks pretty much costs the same as it did a few years back (a latte sipping fool at Starbucks is not someone who would have a problem dishing out an extra quarter). Groceries also cost the same as they did a few years back. Perhaps that is because of low or no inflation that we have had this price stability. If that is the case, and prices are still the same as a few years back, what is the big deal with a little inflation? Is it really going to be worse than oil having doubled, or mortgage rates having gone up by 30% or more? Is it really worse than paying so much more for heating up your home?
As far as I am concerned, the appreciation in cost of living due to gas, rates and commodities has already impacted consumers as much as it could. So why this delayed reaction to inflation (which is still less than 4% annually)? If you ask me, its just something the market uses as an excuse when there is no other explanation. I am not one to gainsay the effects of this perception, but I do question those that talk about inflation like its the end all.
– Faisal Laljee
you are way off.
the cost of the most big ticket
items in life are skyrocketing.
while you see the cost of a
cup of coffee is flat,
get sick or have car accident,
and the hospital
bill has jumped from $25,000
to 50,000. or health
insurance rates
climbing double digits a year.
Want to buy a
regualr house,
oh thats now $100,000
more then 5 years ago and the
house taxes go right up with it.
No inflation, wake up.
Oh and as for food,
its getting more and more
known that cheapie sythetic
food does
not promoted health, so
check out Whole Paychecks
(Whole Foods Markets)
prices and then tell me there
is no inflation.
Gasoline and property – yes they have gone up as has the cost of health care. But the price of produce, sugar, dairy etc., has remained steady. Property appreciation is not necessarily inflation if you own a home. It has in fact help pay off the health care and gasoline expenses. As far as other items go, electronics and apparel are cheaper, cars are cheaper (yes a Toyota Corolla still costs around $15,000 as it did 5 years ago).
My point is that the Fed is freaked because of inflation and the Market is freaked because they know the Fed is freaking and will raise rates.
ok, i dont agree with this
but i will be diplomatic
and let go. but if inflation
is measuring dollar purchasing
power. and if the median price
of a LA home advanced 180%
since 2000, while the cash
is king sits in the bank during
that time,
you got inflation. produce
sugar apparrel are just
dervitates, distracting you
from the real things, those
big ticket items.