Inflation is starting to increase. Since January 1 my company has been notified of price increases by suppliers of 8 to 10%. Our health insurance company presented a 30% renewal hike which we have negotiated down to 12%. Walk through the grocery store and look at food prices. In contrast, real estate prices continue to fall as do real wages.
Hope you didn’t have to give up much to lower your HI > down to 10%. We were getting steady increases over the last 12 years and had to finally cut back. Those supplier increases do not bode well because the worst is still a good ways ahead of us.
Now that inflation is beginning I hope businesses don’t jump the gun on it. The worst shouldn’t occur until after the unemployment percentages decrease. I spoke to a representative of a national financial planning firm who said the inflation is expected to be incremental over a period of years. We’ll see.
I expect real estate values to keep on dropping. There are a few more adjustments due. There is still the expected commercial property time bomb to deal with.
This administration better cut way back on its spending or all hell will break loose, soon.