Posted on 11/14/2023 10:39:39 AM PST by SeekAndFind
This is just dead wrong and misleading.
The fact is that inflation has been cooling and while that perhaps hasn’t had an impact yet on consumers and voters, we are a year away from the general election. I have seen tides shift dramatically in less than twelve months in prior election cycles, often based on the economy.
As to food inflation:
Food prices both for food at home (grocery prices) and food away from home (dining out and other sources) through October increased 0.3 after rising 0.2 in each of the past three months, the report said.
That hardly is a fever pitch.
Last year CPI +8.
This year is projected at +3.5.
The Fed target is +2.
“Inflation is down unless you buy food to eat..”
Or gas or anything else for that matter.Let’s go Brandon.
For prices and costs to go down, that would be DEflation, and that's not happening.
Inflation has done such hideous damage to our middle class including our Military personnel and their families. And also to retirees on fixed incomes. (Like me).
That damage does not disappear just because it's not getting worse as fast as last year.
It’s like in DC, a “spending cut”, is merely a cut in the rate of increase in spending.
Inflation of prices for food is extremely understated. It has been much higher than what is reported for more than a decade, and completely went through the roof the past couple of years.
Inflation is a big problem, and we still have high inflation.
From June to November gas prices have tracked from $4.929 to $3.685.
Or electricity you use or gasoline for your car or....
So how do people get their thousands of dollars back that they lost to inflation over the past few years?
0.3%, month over month. And it is not just the actual inflation rate, but that it is continuing to incrementally increase upwards again.
You can see it in places like the hardware store too. I was at Home Depot and a roll of masking tape was about $6.
People who were ready to retire have lost 20% of their savings, permanently.
People have lost 5 months pay over the past 2.5 years, even after pay raises.
What were they during Trump years?
Food prices are a reflection of fuel prices. Farms use a lot of diesel fuel. So do all the delivery trucks. Those costs are passed along to the final purchaser, us.
Look what fast food restaurants are charging!
That’s not how inflation works, but I’m sure you know that.
The staggering inflation of the late seventies through ‘82 didn’t get erased when Volcker’s rate hikes finally stemmed it.
But a rate reversal did wonders for business spending and consumer sentiment.
Obviously, it’s still too early to declare inflation dead (or even within the Fed’s 2% target area,) but we’re at least seeing some signs that it’s slowing down.
Yesterday UBS strategists published expectations that the benchmark federal funds rate (now 5.5%) will to fall to between 2.5% and 2.75% by the end of 2024, and see a terminal rate of 1.25% by early 2025. If true that’d be massively bullish for the economy.
Today’s 88 point S&P rally shows that at least for today Mr. Market wants to believe.
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