Wasting Away In Inflationville! Flexible CPI YoY Hits 18%, Highest In History (House Price Growth At 18.8% While REAL Wage Growth Crashes)

Confounded Interest ^ | 02/04/2022 | Anthony B. Sanders

[Browns Ultra Fan]

How bad is inflation in the USA? Try 18%, based on the Flexible Consumer Price Index.

The Flexible Price Consumer Price Index (CPI) is calculated from a subset of goods and services included in the CPI that change price relatively frequently. Because flexible prices are quick to change, it assumes that when these prices are set, they incorporate less of an expectation about future inflation.

Again, remember that Federal inflation numbers woefully undercount housing and rent inflation. For example, the Case-Shiller National Home Price index (as of November 2021) was growing at 18.8%.

The sad part is that inflation-adjusted average hourly earnings growth of all employees is crashing thanks to inflation.

Wasting away in Biden’s inflationville.

[Browns Ultra Fan]

The BLS and Fed use sticky price data to avoid doing anything. Now we have a true inflation crisis on our hands with a feeble old fool at the helm.

[crusty old prospector]

And yet the Fed manipulates interest rates to keep them low to encourage people to invest in the Brandon stock market.

[The_Media_never_lie]

“I did that!”, idiot Joe Brandon.

[cdcdawg]

The housing market is completely insane. We built less than 2 years ago, and the house has appreciated already well over 6 figures. This bubble isn’t long for the living.

[Deo volente]

The Fed can manipulate rates only so long. Once inflation really kicks in with real hurt to Americans and the economy, rates will rise quickly. This will kill the stock market and housing bubbles.
A couple of possibilities; stagflation worse than the Carter years, or a total crash and a deflationary depression.
I believe hard times are ahead. I hope I’m wrong.

[bgill]

Housing increased 25% here.

Wanted breakfast sausage a couple days ago but it had nearly doubled so nixed that idea.

[Safetgiver]

Thank you. Joe Biden.

[bgill]

You’ll get the privilege of paying that appreciation in your property taxes. In TX, we don’t have state income tax but that’s more than made up in a 10% property tax increase each year.

[SaxxonWoods]

Inflation peaks late this year and starts down again.

[SaxxonWoods]

“We built less than 2 years ago, and the house has appreciated already well over 6 figures.”

That’s terrible! Better buy a little camping trailer and sell that house before the great crash.

[Az Joe]

Home prices up 32% over last year in Phx Metro. Absolutely nuts!

[cdcdawg]

I’m not looking forward to a reassessment, that’s for sure.

[Organic Panic]

And real inflation is up 100%. Everything I buy is near double now. I was saving to buy a new house but that dream is gone. Even the thrift stores have doubled everything. Let’s go Biden! Three more years of this chomo.

[Go Gordon]

The Fed can manipulate rates only so long. Once inflation really kicks in with real hurt to Americans and the economy, rates will rise quickly. This will kill the stock market and housing bubbles. A couple of possibilities; stagflation worse than the Carter years, or a total crash and a deflationary depression. I believe hard times are ahead.

You think Social Security is in trouble now? Wait until the big COLAs kick in from high inflation numbers. And the $30 trillion debt? Wait until interest rates jack up. Not looking forward to those numbers. All that shorter term debt that gets refinanced at those higher rates - the deficit spending will go through the roof.