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The Worst-Kept Secret In America: High Inflation Is Back
Mise Institute ^ | 5-31-2021 | Mark Hendrickson

Posted on 05/31/2021 9:54:10 AM PDT by blam

To most people, “inflation” signifies widespread rising prices. Economists have long argued, as a matter of technical accuracy, that “inflation” denotes an increasing money supply. Frankly, though, most people don’t care what happens to the supply of money, but they care a lot about the prices they pay, so I’ll focus primarily on the numerous rapidly rising prices Americans are paying today.

Following are several examples of the current inflation:

Corn, soybeans, and wheat have been trading at multi-year highs, with corn having risen from around $3.80 per bushel in January 2020 to approximately $6.75 now. Chicken wings are at all-time record highs. It is getting more expensive to eat.

Copper prices have risen to an all-time high. Steel, too, recently traded at prices 35% above the previous all-time set in 2008. Perhaps most famously, the price of lumber has nearly quadrupled since the beginning of 2020 and has nearly doubled just since January.

Naturally, with raw materials prices soaring, prices of manufactured goods are jumping, too. That is especially noticeable in the housing market, where the median price of existing homes rose to $329,100 in March—a whopping 17.2% increase from a year earlier.

The cost of driving is soaring, too. According to J.D. Power, cited in The Wall Street Journal, the average used car price has risen 16.7% and new car prices have risen 9.6% since January.

So, are you depressed yet? Perhaps you can take some comfort in Uncle Sam’s official price indexes where the price increases seem (at least at first glance) less jarring.

(snip)

Hang on tight, folks. We could be in for a rough ride in the months ahead.

(snip)

(Excerpt) Read more at mises.org ...


TOPICS: News/Current Events
KEYWORDS: economy; inflation; prices; shortages
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1 posted on 05/31/2021 9:54:10 AM PDT by blam
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To: blam

“The quantity of dollars already has risen 32.9% in the last 17 months (mostly due to the federal government’s mind-boggling spending binge).”

The money shot.

Of course inflation will rage.

Especially when combined with production shortages.


2 posted on 05/31/2021 10:03:22 AM PDT by Mariner (War Criminal #18)
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To: blam

Anyone care for to guess what the “official” inflation rate will be at the end of the year? What it “actually” is won’t matter; I’m guessing 3.2% max.


3 posted on 05/31/2021 10:04:16 AM PDT by The Antiyuppie (When small men cast long shadows, then it is very late in the day.)
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To: blam
First-class major attack on the middle class . . . that's all socialism is about . . . We middle-class Americans have most of the money and almost all the weapons . . . And we are living in reasonable security . . .

CAN'T HAVE THAT!!!

4 posted on 05/31/2021 10:05:16 AM PDT by laweeks (The air is always different to a midget on a crowded elevator.)
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To: blam
It’s Mises Institute.
5 posted on 05/31/2021 10:05:23 AM PDT by webheart (I already had COVID disease and 2 vaccine shots Can I take the mask off now?)
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To: The Antiyuppie

It will be 1.65% and “unexpected”.


6 posted on 05/31/2021 10:06:08 AM PDT by CodeToad (Arm up! They Have!)
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To: blam

It’s not a secret any more. Most shoppers are well aware of it.


7 posted on 05/31/2021 10:07:50 AM PDT by 353FMG
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To: blam

This is due to lack of production for a year. Scarcity of products, which is temporary, is the problem.

I know many disgusting people want an economic collapse, but it’s not going to happen.


8 posted on 05/31/2021 10:09:37 AM PDT by SaxxonWoods (Any comment might be sarcasm, or not. It depends. Often I'm not sure either.)
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To: blam
Fortunately the wealthy lifestyle we all have gives us a lot of cushion to "cut back a bit" and reacquaint ourselves with the simpler things in life.

For example, one could save $100/mo simply by cutting their cable TV. Instead, go to the library and borrow some books to ready - for absolutely FREE!. In fact, most libraries have extensive DVD collections to borrow if you really are hooked on movies and TV shows. But I prefer books.

Going to restaurants, even fast food restaurants, are much more expensive then preparing food at home. And I'm not talking microwaved frozen dinners. You can make yourself very nutritious and delicious meals at home by learning to cook from scratch. That would save people well over $100/mo per person even with rising food prices.

On weekends, go hiking in the woods or some other nearby park or beach. Basically for free.

Clothing, one can get reasonably priced clothing (not stylish but practical and neat looking) for a fraction of what is paid for name-brand merchandise.

Buy more things used. For example, I recently started camping. Instead of buying all brand new gear, I got most of it second hand for less than half price of retail. Realize that there are many people who catch the camping bug and run out and get all the top of the line equipment only to tire of the novelty and so end up storing it all in the garage for a few years only to dump it (still almost brand new) on eBay or at a garage sale.

All of the above scarcely affects your standard of living yet saves you a very significant amount of money so that you can ride out the inflation in style.

9 posted on 05/31/2021 10:10:44 AM PDT by SamAdams76 (Give me a Pigfoot and a Bottle of Beer)
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To: blam


10 posted on 05/31/2021 10:10:52 AM PDT by Chode (there is no fall back position, there's no rally point, there is no LZ... we're on our own. P144:1)
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To: The Antiyuppie

Ex-Trump Economist Stephen Moore: We’re Looking At 4 To 5 Percent Inflation Rate

https://freerepublic.com/focus/f-news/3963837/posts


11 posted on 05/31/2021 10:12:45 AM PDT by Hang'emAll (If guns kill people, do pencils misspell words?)
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To: laweeks

Really hit home for me yesterday. Took family out to dinner to place we’ve been going to for 20 years, but haven’t been in over a year due to covid. The bill was about 30% higher than in the past. That’s it for dining out.


12 posted on 05/31/2021 10:13:36 AM PDT by teevolt
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To: blam

Yet interest rates have been going DOWN of late. Bizarre.


13 posted on 05/31/2021 10:14:56 AM PDT by montag813 ("Fallen, fallen, is Babylon the Great")
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To: blam

Well, pedo joe hasn’t noticed and janet ‘who’s dat’ yellin’ says it’s just a temporary thing. Tell that to my erf killin’ Ram. It took $70.00💰 to ‘temporarily’ fill it yesterday. $3.42/gal with kroger/smiths 30 cents off/gal points. No doubt SS will do a “cola” for those drawing it. 💸💸💸💸


14 posted on 05/31/2021 10:15:32 AM PDT by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this?)
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To: The Antiyuppie

Yep, they will officially report it in the low threes. Then they will announce an increase in our chocolate ration and the incredible results achieved in the latest Five Year Plan.


15 posted on 05/31/2021 10:15:57 AM PDT by ProtectOurFreedom (“No man’s life, liberty or property are safe while the Legislature is in session" - Gideon J. Tucker)
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To: montag813

Yet interest rates have been going DOWN of late. Bizarre.

The Bond Market looks forward. The current scarcity will go away.

But inflation/collapse lovers are in their glory. Fortunately they will be disappointed when this temporary scarcity abates.


16 posted on 05/31/2021 10:17:22 AM PDT by SaxxonWoods (Any comment might be sarcasm, or not. It depends. Often I'm not sure either.)
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To: Hang'emAll

4 to 5 percent if you exclude things like gasoline, cars, appliances, lumber, pipe, houses, alcohol, milk, eggs, clothing...you know, the necessities.


17 posted on 05/31/2021 10:19:27 AM PDT by ProtectOurFreedom (“No man’s life, liberty or property are safe while the Legislature is in session" - Gideon J. Tucker)
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To: SamAdams76

Cut the cable, changed car ins, higher deductible for Mrs rktman’s hlth ins, lowered cell service. Lowering costs still ain’t keep in up with the buyDUNG bubble. 💸💸💸🐂💨💩


18 posted on 05/31/2021 10:19:38 AM PDT by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this?)
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To: blam

A deliberate effort by the traitorous Demonicrats (in obedience to their Master Xi) to further weaken and destroy the United States.


19 posted on 05/31/2021 10:24:04 AM PDT by Carl Vehse
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To: ProtectOurFreedom
they will announce an increase in our chocolate ration

Increased from 40 to 30 grams

And in the interests of economy the cardboard and aluminum wrapper will be included in the weight.

20 posted on 05/31/2021 10:24:18 AM PDT by spokeshave (White Confederate statue kills black man......Another month of protests.... (HT to seawolf101))
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