Posted on 05/11/2022 6:42:27 AM PDT by Browns Ultra Fan
April’s inflation numbers are out and, at first glance, inflation seems to be cooling from 8.5% YoY in March to 8.3% YoY.
But the headline inflation numbers do not accurately reflect the pain and suffering of American households. Food is up 9.4% YoY and gasoline is up 43.6% YoY.
The strange way the BLS measure “shelter” shows that housing only grew at 5.1% YoY. That’s odd since home price growth is almost 20% YoY and rent growth is near 20%.
Runaway home prices and rents are especially painful given that inflation is destroying the purchasing power of the dollar for consumers. Real average weekly earnings YoY are at -3.4% YoY.
Hence, the purchasing power of the US Dollar keeps eroding.
Good luck out there with inflation still roaring, and food/housing/energy prices soaring.
(Excerpt) Read more at confoundedinterest.net ...
used car prices are actually falling because people can’t afford the high interest rate combined with the increased price. So affordability was a cap on how high the price could go.
But isn’t this foreshadowing for a housing bubble pop?
The same story with housing, increasing prices, and high interest. So is there going to be a crash in housing price?
Disclaimer: I really know nothing on these subjects just thinking out loud
hopefully this is the top and it continues to level out of start down from here. I hate Biden, but would prefer the economy not slip into depression to get rid of him.
“Cooling” inflation rates would be 1-2%, or even a negative rate, “deflation”. Deflation is believed to be a bad thing, in that holding onto cash instead of depositing it in a bank, means your money will be worth MORE next month instead of less.
Your mattress becomes your “lending institution”. Banks are squeezed out.
Original article:
“The strange way the BLS measure “shelter” shows that housing only grew at 5.1% YoY. That’s odd since home price growth is almost 20% YoY and rent growth is near 20%.”
What this means is that folks with fixed rate mortgages are not seeing increases in their mortgages (though of course other costs of home ownership are rising like crazy).
Renters (overall less affluent) are getting boned.
We had about 20 years of deflation. The only reason it didn’t happen is the Fed just kept printing more money. Think about it. We have record low inflation for years at the same time the Fed is doing quantitative easing.
BTW: Deflation is supposed to be bad because then no one will buy anything, and our economy is based on buying stuff. So they say. Now if we had a gold standard then it would not be as bad.
According to Biden it is mostly Putin’s fault.
And Treasury secretary Yellen said yesterday if SCOTUS drops Roe, economy will suffer. I always thought population increase helps growth in economy.
I think deflation is so looked down upon like an evil of all evils economically because of the Great Depression which the FED caused by their inaction. So since then the mantra has been inflation is better than deflation at all costs which ties nicely into rampant government spending.
The leftists are all over saying inflation is easing. Take a look at historic month-to-month inflation statistics. The figures fall slightly and rise slightly month-to-month. Don’t listen to the spin. You know better if you go to the grocery store, gas pump and pay your bills.
How do continual swarms of illegals pouring in affect things?
Housing is a lagging entity. Because people can lock in interest rates for 60 days. Also houses do not sell instantly like stocks. One had to find a buyer, then buyer has to be approved for mortgage loan (unless the buyer has cash which is a small number). I expect house prices for new & used homes will start declining after the parents have finished relocating for new school year.
Cooling inflation only because April 2021 numbers were so bad.
So let’s print more free money and send to godforsaken hellholes to kill each other more better!!!
That’s the ticket!
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