C.P.I. -Inflation was running at a pace of 7.5% in January, representing a 40-year high

Admin Posts : 210 Join date : 2014-07-29

Inflation is running hot, but not everyone is feeling the burn.
Published: Feb. 10, 2022 at 11:14 a.m. ET
By Jacob Passy, MarketWatch

The average household is spending an extra $250 a month, or $3,000 per year, due to high inflation — but middle-aged Americans are paying even more

A new report examines the impact of inflation on the average household

The latest edition of the consumer price index showed that inflation was running at a pace of 7.5% in January, representing a 40-year high. The cost of everything from rent to dairy to used cars rose in January, showing how inescapable the run-up in consumer prices has been.

So just how much has all this inflation cost Americans? Moody’s Analytics compared a 7% pace of inflation with the average rate of inflation in 2018 and 2019, which was around 2.1%. Based on that comparison, the average household is spending an additional $250 a month, or $3,000 per year, because of rising inflation.

The impact differs based on age, the Moody’s analysts noted in its recent report. People between the ages of 45 and 54 have borne the largest brunt of high inflation, seeing their expenses increase $305 on a monthly basis. Comparatively, Americans who are 65 years and older are only spending an additional $194 per month.

As workers demand higher wages to account to the rising cost of living, business may pass those expenses onto customers in the form of higher prices — perpetuating the inflationary cycle.

The silver lining for households is that the rate of consumer-price growth may soon start to slow a bit. Supply-chain challenges have remained a driver of high inflation throughout the pandemic, but those issues could start to abate soon.

As Moody’s senior director of economic research Ryan Sweet noted, “There have been some signs that stress in U.S. supply chains is easing, and if sustained, this will be a significant source of disinflation for core inflation this year.”

However, he cautioned that as workers demand higher wages to account to the rising cost of living, business will pass those expenses onto customers in the form of higher prices — perpetuating the inflationary cycle.

“This vicious cycle was behind the high inflation we suffered more than 30 years ago,” Sweet wrote. “The Fed views the risks of a regime of high inflation as greater than the downside risks of low inflation.”

Translation:

"Multinationals and other big businesses have seen record profits but are raising prices anyway because fuck you that's why. Squeezing every last dime out of consumers so CEOs and shareholders can make bank is strangling the economy in part because almost all the covid 'relief' funds went to the 1% who used it to pay bonuses, raise top salaries, and buy back stock.

The predator class is bloated but still hungry so everyone else will just have to tighten their belts since the last thing politicians or the corporate media will ever do is turn on their owners."

You're welcome.

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X-Clacks-Overhead: GNU Terry Pratchett

Went to the grocery store today. The smallest steak they had was ten bucks. FJB Mad

Regular Member Posts : 7317 Join date : 2014-07-29

In recent decades, inflation had stayed unusually low from 1960 to 1980; for example, prices rose 166%."

"In the next two decades, they rose 117%. But from 2000 to January 2021, prices rose just 55%, including all of last year from 2000 through December 2021, prices rose 65.5%.

That is a huge uptick in one year, and it is throwing household budgets out of whack. But taken as a whole, we are still in an era of low inflation.
Now one reason prices probably stayed low for so long is because wages stayed low. …
Workers didn't start to make real gains until the late 20 tens, and now inflation is eating into those gains. But they have made gains, and perhaps as inflation subsides, those gains will grow again. Cheap goods helped keep inflation down in the last two decades."

Many commentators in our media, even good ones like Zakaria, fail because they rely on our economy's old guard's framing. It generally absolves the corporation and our economic system for the ills
that affect us all.

Recently Facebook claimed a meme at our Coffee Party USA site was partly false after AFP reviewed it.

The meme said: Umm, can we stop calling it inflation and call it what it really is? Price gouging and corporate greed.

AFP FACT CHECK:
Facebook posts claim that the rising cost of goods in the United States is due to price gouging rather than inflation. But the experts rejected the idea that corporations are the main culprit and said the spike
in prices follows big federal spending, heightened demand, and supply problems, all of which accompanied the pandemic.

First of all, the fact check is wrong. It's corporations that raise prices, and thus nominally;
they are the ones who cause inflation. But that is neither here nor there because they must raise prices if their costs go up. The question is why did their prices go up. Is it the private sector or the government?

When our Coffee Party USA group brought it to my attention, I had a message that I wanted to make clear. Most importantly, I hope everyone keeps in their minds and on the tip of their tongue.

The fact-checkers are completely wrong, and it is clear it is corporate biased. You cannot have natural inflation unless there are shortages. Except for cars and select products, there are no shortages.

Agriculture price increases are a choice by monopolies because they have pricing power. Even the supply chain issues are corporate greed issues.
The private sector chose Just-In-Time-Inventory (JITI), which means even a short supply-chain disruption can cause shortages. As well, corporate greed created chip shortages.
They decided to chase cheap labor overseas.
The supply-chain disruption caused by the pandemic and JITI is the failure of the private sector, not the government.

Math always offers an answer. You cannot have record profits even before the realization of inflation and then claim you had to raise prices to maintain profits. Inflation is an excuse used to transfer the wealth of the many to the few.

If one does not call out the false inflation claims, including the fact-checkers carrying the load for the plutocracy, our decline to the indentured servitude
of 80% of Americans will continue. It is incredible how the powers of the plutocracy will coalesce.

And too often, we allow ourselves to be complicit because we are comfortable (by "we," I mean those doing generally well who have a platform. The poor and lower-middle-class are working too damn hard
to survive).

Come on, America. Let's stop acquiescing to the fraud that is our economic system.

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Temple, okay, let me explain it here -

First, nobody is going to read that.

Second, if they do read it they won't accept it because it's just another spin piece.

Third, even if they do accept it they won't give a rat's ass because all they care about is the amount of cash coming out of their wallet every time they pull up to the pump or the grocery store cash register.

And nobody sees that amount of cash going down anytime soon.

FJB

Regular Member Posts : 7317 Join date : 2014-07-29

oliver clotheshoffe wrote:: Temple, okay, let me explain it here -

First, nobody is going to read that.

You read it-

Quote :: Second, if they do read it they won't accept it because it's just another spin piece.

sigh--

Quote :: Third, even if they do accept it they won't give a rat's ass because all they care about is the amount of cash coming out of their wallet every time they pull up to the pump or the grocery store cash register.

And nobody sees that amount of cash going down anytime soon.
FJB

I don't give ah shit - I didn't read it-
Why are you so lame ahaa!

Posts : 2495 Join date : 2017-09-09

There

Temple wrote:: I don't give ah shit - I didn't read it-
Why are you so lame ahaa!

There ya have it .. He'll look at the headlines in them mainstream rags and if they support the left or his "team" (as Vitriol said) and/or oppose the right, or the other "team", then he'll copy the article, drag it here and paste it, without even bothering to read WTF he posted

A lotta times, if anyone actually reads and replies to it, he'll go copy another article and paste it, repeating his useless dumfuckery

He's proudly admitted that he doesn't watch youtube videos while being the first to sound off on them based on the title.. I guess he believes can gather more information from the title alone than someone who actually watches the video

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