How is Inflation Affecting Your Daily Expenses?

[kyphysics]

That article does a really poor job of making it clear those are year-over-year, not monthly changes.

Inflation figures should be viewed by default as YOY (if it's MOM, they usually specific that).

Saw this today, by the way:


Core CPI (which is ex-energy and ex-food, b/c those are considered volatile/seasonal) weights shelter at 30-40%, so this will have a big impact later.

 

[kyphysics]

Inflation ran at a fresh 30-year high in August as supply chain disruptions and extraordinarily high demand fueled ongoing price pressures, the Commerce Department reported Friday.

The core personal consumption expenditures price index, which excludes food and energy costs and is the Federal Reserve’s preferred measure of inflation, increased 0.3% for the month and was up 3.6% from a year ago. The monthly gain was slightly higher than the 0.2% Dow Jones estimate and the annual forecast of 3.5%.

https://www.cnbc.com/2021/10/01/key...ederal-reserve-hits-another-30-year-high.html

 

[kyphysics]

I'd rather have that go towards a home mortgage. That car depreciates and dies.



My gallon of regular is $2.99. I don't feel so bad. Some people are paying $5:

https://www.cnbc.com/2021/10/06/americans-are-paying-the-most-for-gas-in-seven-years.html

 

[kyphysics]

https://www.cnbc.com/2021/10/13/prices-continue-to-riseheres-whats-getting-the-most-expensive.html

The consumer price index, which measures changes in how much Americans pay for certain goods and services, rose 0.4% in September, the Labor Department reported Wednesday, driven largely by increases in food, shelter and gasoline. Year-over-year, prices increased 5.4%, the largest jump since January 1991.

It’s a continuation of an inflationary trend consumers have experienced for nearly all of 2021. Here’s how much prices have increased over the past year in key categories, according to the Labor Department:

• Rental cars: 42.9%
• Gas: 42.1%
• Used cars: 24.4%
• Hotels: 18%
• TVs: 12.7%
• Furniture: 11.2%
• Meats, poultry, fish and eggs: 10.5%
• New cars: 8.7%
• Appliances: 7.1%
• Electricity: 5.2%
• Restaurant prices: 4.7%
• Rent: 2.9%

Year-over-year figures for September.

 

[kyphysics]

Houses, houses...grab 'em while they're hot.

 

[kyphysics]

It’s important to understand what the cost implications are for consumers with this lack of supply in the supply chain. It’s pure supply and demand economics. Consider volume shipping customers who primarily use ‘general freight’, which is the lowest cost shipping and typically travels in a ‘space available’ fashion. They have usually been able to get their freight moved from origination to delivery within two weeks. Think about how you get your packages from Amazon. Even without paying for Prime, you usually get your stuff in a week. The majority of freight travels at this low cost, ‘no guarantee of delivery date’ way, and for the most part it’s been fine for both shippers and consumers. Those days are coming to an end.

People who want their deliveries in a reasonable time are going to have to start paying premium rates. There will be levels of priority, and each increase in rate premium essentially jumps that freight ahead of all the freight with lower or no premium rates. Unless the lack of shipping infrastructure is resolved, things will back up in a cascading effect to the point where if your products are going general freight, you might wait a month or two for delivery. It’s already starting. If you use truck shipping in any way, you’ve no doubt started to see the delays. Think about what’s going to happen to holiday season shipping.

This is scary. Done your holiday delivery shopping yet?

 

[kyphysics]

No end in sight (yet).

November inflation rose 6.8% y/y (most in 39 years) and 0.8% m/m.

 

[kyphysics]

Maybe I should stock up some supplies on sale. . .

 

[kyphysics]

Oh...the pain!

 

[kyphysics]

 

[kyphysics]

It's like $4.50 for a bag of shrinkflated 7 oz. chips at my local Target. And that's considered ON SALE!

 

[hutchphd]

For me the inflation from the chips has more to do with gravity than currency.

 

[kyphysics]

For me the inflation from the chips has more to do with gravity than currency.

?

 

[hutchphd]

My personal avoirdupois!

 

[StevieTNZ]

https://www.stuff.co.nz/business/127609594/inflation-shoots-up-to-59

Annoying.

 

[sysprog]

My rants are far older than the latest round of "whatever the market will bear". Before I depart the planet I would love to be able to again purchase:

1. A one pound can of coffee (now 11,12,or 13 oz)
2. A half gallon of ice cream (now 48 oz)
3. A 16 oz can of corn (now 14.5 oz)
4. Orange juice half gallon (now 52 oz)

There is no excuse. Froggy in warming water...

It's commonly known that the liquor industry decreased the pint and half-pint bottle sizes, replacing the pint with 375ml, i.e. 12.68 ounces, i.e. a half-fifth, i.e. a tenth, instead of 16 ounces, and the half-pint with 200ml, i.e. 6.8 ounces, instead of 8 ounces $-$ still, if you go into a liquor store and ask for a pint, you'll get the 375ml bottle in response as if it were a pint, but if you ask for a tenth, you'll get questions about which bottle you mean.

 

[WWGD]

If year-over-year food inflation is coming off May 2020's base, then it's possible food had already inflated heavily by then from COVID.

I know paper products (toilet paper, napkins, towels, etc.) and food (esp., meat) were among the first items to inflate last year. Since reported inflation figures are usually YOY (month-over-month exists too, but usually isn't the official reported figure), it may be that you're getting an already high base.

*just speculation - am not sure/have not looked*

I've reported shrinkflation at Chick-Fil-A and Panda Express in the past two months.

eta: There's this chart I've seen (and many others supporting huge food inflation from the producer side...not sure how much is getting passed down on the consumer side, but from news stories, it's happening now already at many chain restaurants ...):
View attachment 285553

Re "Shrinkflation", I've seen a couple of "Lunch Specials" : 50% off any lunch. Where...they give roughly half the usual Lunch amount. And they charge for every little extra: (paraphrase-exaggerated for effect)"Ah, you want a chair? That's going to cost you extra. A plate too? That's also extra, etc.
I felt like I was in a Monty Python skit.

 

[kyphysics]

 

[kyphysics]

Has anyone changed their shopping habits due to inflation?

I've eaten out a tiny bit less. ...Maybe decreasing by $15/week or so.

Still buying Chick-Fil-A twice a week and the Burger King 2-for-$5 deal once a week as well.

 

[StevieTNZ]

Has anyone changed their shopping habits due to inflation?

I've eaten out a tiny bit less. ...Maybe decreasing by $15/week or so.

Still buying Chick-Fil-A twice a week and the Burger King 2-for-$5 deal once a week as well.

My income has risen in line with NZ's inflation rate, so I'm all good.

 

[kyphysics]

Jug of white distilled vinegar one week ago at Target: $269
Today: $329

Rubbing alcohol has gone from $199 to $269 in the last few months. Cleaning supplies costing a mini-fortune.

 

[kyphysics]

So far Panera has been treating me well.

Their proportion sizing hasn't fallen off a cliff, nor have they raised prices to the point where I find it ridiculous.
Can't say the same for other places.

 

[Mark44]

Jug of white distilled vinegar one week ago at Target: $269
Today: $329

Rubbing alcohol has gone from $199 to $269 in the last few months. Cleaning supplies costing a mini-fortune.

It looks like you omitted the decimal point from these prices. If not, you should consider shopping somewhere else.

 

[WWGD]

So far Panera has been treating me well.

Their proportion sizing hasn't fallen off a cliff, nor have they raised prices to the point where I find it ridiculous.
Can't say the same for other places.

I've run into some restaurants that offer 50% off from the lunch menu...while serving portions around half the usual size. And charging extra for everything else: " Hey, you want a plate too? Well, that will be extra" "you want a chair to sit down? Extra". ( Only a slight exaggeration).

 

[kyphysics]

( Only a slight exaggeration).

I believe it. I've seen "inflation fees" on receipts at some restaurants posted on Twitter.

It's pretty funny actually. I feel bad for everyone really (business and customers).

 

[kyphysics]

Target store

Mach 3 razors 3-pack (early 2022): $6.99
Mach 3 razors 3-pack (today): $9.29

This legitimately angers me. I have to buy lots of razors and this jump is just...killer!

 

[WWGD]

Target store

Mach 3 razors 3-pack (early 2022): $6.99
Mach 3 razors 3-pack (today): $9.29

This legitimately angers me. I have to buy lots of razors and this jump is just...killer!

I wash mine ( Bic) under water with reasonable pressure and reuse them a few times. It's worked well for me. Though maybe you can grow an " Inflation Beard". Edit: This works after a shower, given your skin softens from the moisture. Not sure otherwise.

 

[Klystron]

Target store

Mach 3 razors 3-pack (early 2022): $6.99
Mach 3 razors 3-pack (today): $9.29

This legitimately angers me. I have to buy lots of razors and this jump is just...killer!

Taking advantage of the male societal prerogative 'stubble is acceptable', I shave using a Wahl professional hair trimmer with snap on guides. No guide and blade guard retracted removes hair down to the skin. Guides 1, 1.5 and 2 trim my goatee beard, mustache and sideburns. Since Covid, I use the same trimmer on my hair saving barber fees as well as saving on expensive grooming products.

I replaced the Wahl clipper once in 30 years of daily use. The clipper, designed for barber shops and hair salons, lasts for a long time with minimal maintenance. A small bottle of fine machine oil lasts years, replacing expensive shaving creams. For special occasions I smooth exposed face with a safety razor like the type described in the previous comment but one pack of blades lasts a long while.

 

[ChemAir]

If you switch to shaving in the shower, when your beard is soft, you will find your blade usage goes down.

 

[MathematicalPhysicist]

How was John's prophecy gone: first plague, then war, then starvation then death...

 

[kyphysics]

Writing for Fortune in 1977, Buffett had a few choice words to say about inflation when he offered the example of a widow living on a fixed 5% savings rate amid inflation that was running at a similar rate. "It makes no difference to a widow with her savings in a 5% passbook account whether she pays 100% income tax on her interest income during a period of zero inflation or pays no income tax during years of 5% inflation," he said.

Speaking as to the hidden tax of inflation, he continued, "Either way, she is 'taxed' in a manner that leaves her no real income whatsoever. Any money she spends comes right out of capital. She would find outrageous a 100% income tax but doesn't seem to notice that 5% inflation is the economic equivalent."

https://finance.yahoo.com/news/what-made-warren-buffett-rich-is-making-us-all-poorer-193628699.html

Some interesting thoughts from a very wise gentleman.

 

[gmax137]

a very wise gentleman

When in Omaha, try Gorat's Steakhouse. Warren recommends it as reasonably priced. I ate there a number of times and he's right.

I just checked their menu online. The prices are up from when I was there 11 years ago, but they are still a good deal.

 

[jbriggs444]

If you switch to shaving in the shower, when your beard is soft, you will find your blade usage goes down.

Yep. My wife and I share a blade and the disposable razor in the shower lasts for months. It does not hurt that work-from-home means that a shave every day or three is acceptable.

 

[WWGD]

Yep. My wife and I share a blade and the disposable razor in the shower lasts for months. It does not hurt that work-from-home means that a shave every day or three is acceptable.

Seems to grow slower the less you shave. But my beard grows very irregularly and I just look insane with random blotches through my face if I don't shave it at least biweekly. Some of the major stores sell 12+ packs pretty cheap.

 

[kyphysics]

While it might save me money, I refuse to shave in the shower.

Saw this today:

...wonderful