Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave

[McRocket]

'While unsuspecting U.S. consumers continue to expect low, sub-2% inflation according to the latest YTD low breakeven rate, little do they know they are about to be blindsided by a coming inflationary shock, according to a new WSJ reportwhich notes that many U.S. consumer staple and industry-leading companies are either already in the process of raising prices, or have set concrete plans to do so in the very near future.

Once these price increases are passed through to consumers, it will likely mark the end to a long period of "low inflation" that the Fed has constantly leaned on as an excuse to keep rates low for nearly a decade.

Take Clorox for example, which is raising prices on everyday products like cat litter. Coca-Cola also reported higher prices for the past quarter. Mondelez International also plans to raise prices in North America next year according to an interview with its CEO on Monday. The food giant said that it is passing along rising costs, including ingredient and transportation costs, to consumers.

Airlines are also passing on costs as they are paying about 40% more for jet fuel than they were a year ago. Delta, jetBlue and American have all raised fees, fares, or both. Trucking costs were up 7% annually in September and private sector wages and salaries in the September quarter rose 3.1%....'

Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave

In other words...if you think these rate rises are going to stop soon? You might want to think again.


And for those Trumpbots who think ZeroHedge is a left leaning site?

LOL...think again.

 

[saveliberty]

How Bad Is Inflation? Past, Present, Future

So what do you think of the chart Chicken Little?

 

[JGalt]

'While unsuspecting U.S. consumers continue to expect low, sub-2% inflation according to the latest YTD low breakeven rate, little do they know they are about to be blindsided by a coming inflationary shock, according to a new WSJ reportwhich notes that many U.S. consumer staple and industry-leading companies are either already in the process of raising prices, or have set concrete plans to do so in the very near future.

Once these price increases are passed through to consumers, it will likely mark the end to a long period of "low inflation" that the Fed has constantly leaned on as an excuse to keep rates low for nearly a decade.

Take Clorox for example, which is raising prices on everyday products like cat litter. Coca-Cola also reported higher prices for the past quarter. Mondelez International also plans to raise prices in North America next year according to an interview with its CEO on Monday. The food giant said that it is passing along rising costs, including ingredient and transportation costs, to consumers.

Airlines are also passing on costs as they are paying about 40% more for jet fuel than they were a year ago. Delta, jetBlue and American have all raised fees, fares, or both. Trucking costs were up 7% annually in September and private sector wages and salaries in the September quarter rose 3.1%....'

Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave

In other words...if you think these rate rises are going to stop soon? You might want to think again.


And for those Trumpbots who think ZeroHedge is a left leaning site?

LOL...think again.

I've been anticipating every cataclysmic event the left has predicted ever since the day Trump was sworn in. And still, not a one of them has come to pass. That kinda sucks, seeing as how I stockpiled all those guns, ammunition, and preparatory supplies throughout the Obama years.

Do you have any idea how boring it is, waiting for the apocalypse day after day, and nothing happens? Damn you all. Damn you all to hell.

 

[Weatherman2020]

'While unsuspecting U.S. consumers continue to expect low, sub-2% inflation according to the latest YTD low breakeven rate, little do they know they are about to be blindsided by a coming inflationary shock, according to a new WSJ reportwhich notes that many U.S. consumer staple and industry-leading companies are either already in the process of raising prices, or have set concrete plans to do so in the very near future.

Once these price increases are passed through to consumers, it will likely mark the end to a long period of "low inflation" that the Fed has constantly leaned on as an excuse to keep rates low for nearly a decade.

Take Clorox for example, which is raising prices on everyday products like cat litter. Coca-Cola also reported higher prices for the past quarter. Mondelez International also plans to raise prices in North America next year according to an interview with its CEO on Monday. The food giant said that it is passing along rising costs, including ingredient and transportation costs, to consumers.

Airlines are also passing on costs as they are paying about 40% more for jet fuel than they were a year ago. Delta, jetBlue and American have all raised fees, fares, or both. Trucking costs were up 7% annually in September and private sector wages and salaries in the September quarter rose 3.1%....'

Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave

In other words...if you think these rate rises are going to stop soon? You might want to think again.


And for those Trumpbots who think ZeroHedge is a left leaning site?

LOL...think again.

Flee to Venezuela while you still can.

 

[Weatherman2020]

“If the question is when markets will recover, a first-pass answer is never.”
- Paul Krugman, November 9, 2016

 

[Indeependent]

The WSJ said the market would crash on day 1 of a Trump presidency.

 

[fncceo]

Take Clorox for example, which is raising prices on everyday products like cat litter.

I never bleach my cat.

 

[McRocket]

How Bad Is Inflation? Past, Present, Future

So what do you think of the chart Chicken Little?

I think a) you have no idea that the government does not measure inflation (officially) the way they used to. So comparing inflation rates of the past to today is almost totally irrelevant.
Inflation Actually Near 10% Using Older Measure
I think b) you have little/no idea that the Fed has been 'artificially' pumping up the economy for the past 10+ years (as have other major central banks).
I think c) you have little/no idea what would happen to the federal budget deficit if the Fed raises rates back to historic norms.
I think d) you have little/no idea that the 'official' inflation rate is even today over the Fed's artificial ceiling of 2%. If inflation keeps rising, then the Fed will be forced to continue to raise rates.
And even Trump surely realizes that this economy is almost completely dependent on cheap debt to fuel it. Without access to that cheap money - the economy will almost certainly come to a screeching halt (barring some crazy, new Fed scheme).

Finally, I think e) that you seem to know squat about the present economy and are a waste of my time on this subject.

So noted.


We are done here.

Have a nice day.

 

[Toddsterpatriot]

How Bad Is Inflation? Past, Present, Future

So what do you think of the chart Chicken Little?

I think a) you have no idea that the government does not measure inflation (officially) the way they used to. So comparing inflation rates of the past to today is almost totally irrelevant.
Inflation Actually Near 10% Using Older Measure
I think b) you have little/no idea that the Fed has been 'artificially' pumping up the economy for the past 10+ years (as have other major central banks).
I think c) you have little/no idea what would happen to the federal budget deficit if the Fed raises rates back to historic norms.
I think d) you have little/no idea that the 'official' inflation rate is even today over the Fed's artificial ceiling of 2%. If inflation keeps rising, then the Fed will be forced to continue to raise rates.
And even Trump surely realizes that this economy is almost completely dependent on cheap debt to fuel it. Without access to that cheap money - the economy will almost certainly come to a screeching halt (barring some crazy, new Fed scheme).

Finally, I think e) that you seem to know squat about the present economy and are a waste of my time on this subject.

So noted.


We are done here.

Have a nice day.

That Shadowstats guy is funny!!!

Sure fooled a lot of morons.

 

[saveliberty]

How Bad Is Inflation? Past, Present, Future

So what do you think of the chart Chicken Little?

I think a) you have no idea that the government does not measure inflation (officially) the way they used to. So comparing inflation rates of the past to today is almost totally irrelevant.
Inflation Actually Near 10% Using Older Measure
I think b) you have little/no idea that the Fed has been 'artificially' pumping up the economy for the past 10+ years (as have other major central banks).
I think c) you have little/no idea what would happen to the federal budget deficit if the Fed raises rates back to historic norms.
I think d) you have little/no idea that the 'official' inflation rate is even today over the Fed's artificial ceiling of 2%. If inflation keeps rising, then the Fed will be forced to continue to raise rates.
And even Trump surely realizes that this economy is almost completely dependent on cheap debt to fuel it. Without access to that cheap money - the economy will almost certainly come to a screeching halt (barring some crazy, new Fed scheme).

Finally, I think e) that you seem to know squat about the present economy and are a waste of my time on this subject.

So noted.


We are done here.

Have a nice day.

I think you got owned and are fleeing the scene of your failure.

 

[pinqy]

Inflation will increase. That's a given (barring some extremely unusual occurrence). It has increased recently, but as for the future, by how much and how quickly, is uncertain.

Disastrous, Venezuela -like inflation? Not going to happen.

so while McRocket is not really wrong in the OP, I predict he will go on to make unsupported claims, and untruthful/misleading statements about how inflation is measured.

Shakespeare and Zerohedge are garbage sites that say very little that's true.

 

[EdwardBaiamonte]

'While unsuspecting U.S. consumers continue to expect low, sub-2% inflation according to the latest YTD low breakeven rate, little do they know they are about to be blindsided by a coming inflationary shock, according to a new WSJ reportwhich notes that many U.S. consumer staple and industry-leading companies are either already in the process of raising prices, or have set concrete plans to do so in the very near future.

Once these price increases are passed through to consumers, it will likely mark the end to a long period of "low inflation" that the Fed has constantly leaned on as an excuse to keep rates low for nearly a decade.

Take Clorox for example, which is raising prices on everyday products like cat litter. Coca-Cola also reported higher prices for the past quarter. Mondelez International also plans to raise prices in North America next year according to an interview with its CEO on Monday. The food giant said that it is passing along rising costs, including ingredient and transportation costs, to consumers.

Airlines are also passing on costs as they are paying about 40% more for jet fuel than they were a year ago. Delta, jetBlue and American have all raised fees, fares, or both. Trucking costs were up 7% annually in September and private sector wages and salaries in the September quarter rose 3.1%....'

Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave

In other words...if you think these rate rises are going to stop soon? You might want to think again.


And for those Trumpbots who think ZeroHedge is a left leaning site?

LOL...think again.

since Fed's job is to control inflation why would they allow any significant inflation???

 

[pinqy]

'While unsuspecting U.S. consumers continue to expect low, sub-2% inflation according to the latest YTD low breakeven rate, little do they know they are about to be blindsided by a coming inflationary shock, according to a new WSJ reportwhich notes that many U.S. consumer staple and industry-leading companies are either already in the process of raising prices, or have set concrete plans to do so in the very near future.

Once these price increases are passed through to consumers, it will likely mark the end to a long period of "low inflation" that the Fed has constantly leaned on as an excuse to keep rates low for nearly a decade.

Take Clorox for example, which is raising prices on everyday products like cat litter. Coca-Cola also reported higher prices for the past quarter. Mondelez International also plans to raise prices in North America next year according to an interview with its CEO on Monday. The food giant said that it is passing along rising costs, including ingredient and transportation costs, to consumers.

Airlines are also passing on costs as they are paying about 40% more for jet fuel than they were a year ago. Delta, jetBlue and American have all raised fees, fares, or both. Trucking costs were up 7% annually in September and private sector wages and salaries in the September quarter rose 3.1%....'

Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave

In other words...if you think these rate rises are going to stop soon? You might want to think again.


And for those Trumpbots who think ZeroHedge is a left leaning site?

LOL...think again.

since Fed's job is to control inflation why would they allow any significant inflation???

Because they can’t predict future price changes perfectly an they can’t predict shocks at all, and there is a lag between the FED’s actions and the effects of those actions.

 

[fncceo]

We are done here.

Promise?

Don't tease me.

 

[EdwardBaiamonte]

'While unsuspecting U.S. consumers continue to expect low, sub-2% inflation according to the latest YTD low breakeven rate, little do they know they are about to be blindsided by a coming inflationary shock, according to a new WSJ reportwhich notes that many U.S. consumer staple and industry-leading companies are either already in the process of raising prices, or have set concrete plans to do so in the very near future.

Once these price increases are passed through to consumers, it will likely mark the end to a long period of "low inflation" that the Fed has constantly leaned on as an excuse to keep rates low for nearly a decade.

Take Clorox for example, which is raising prices on everyday products like cat litter. Coca-Cola also reported higher prices for the past quarter. Mondelez International also plans to raise prices in North America next year according to an interview with its CEO on Monday. The food giant said that it is passing along rising costs, including ingredient and transportation costs, to consumers.

Airlines are also passing on costs as they are paying about 40% more for jet fuel than they were a year ago. Delta, jetBlue and American have all raised fees, fares, or both. Trucking costs were up 7% annually in September and private sector wages and salaries in the September quarter rose 3.1%....'

Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave

In other words...if you think these rate rises are going to stop soon? You might want to think again.


And for those Trumpbots who think ZeroHedge is a left leaning site?

LOL...think again.

since Fed's job is to control inflation why would they allow any significant inflation???

Because they can’t predict future price changes perfectly an they can’t predict shocks at all, and there is a lag between the FED’s actions and the effects of those actions.

oh so you admit they can control inflation just not in a timely or precisely way but over the long term it will average 2-4% as it has for the last 40 years?

 

[EdwardBaiamonte]

Because they can’t predict future price changes perfectly

the Fed does not have to predict perfectly to control any significant inflation

 

[pinqy]

'While unsuspecting U.S. consumers continue to expect low, sub-2% inflation according to the latest YTD low breakeven rate, little do they know they are about to be blindsided by a coming inflationary shock, according to a new WSJ reportwhich notes that many U.S. consumer staple and industry-leading companies are either already in the process of raising prices, or have set concrete plans to do so in the very near future.

Once these price increases are passed through to consumers, it will likely mark the end to a long period of "low inflation" that the Fed has constantly leaned on as an excuse to keep rates low for nearly a decade.

Take Clorox for example, which is raising prices on everyday products like cat litter. Coca-Cola also reported higher prices for the past quarter. Mondelez International also plans to raise prices in North America next year according to an interview with its CEO on Monday. The food giant said that it is passing along rising costs, including ingredient and transportation costs, to consumers.

Airlines are also passing on costs as they are paying about 40% more for jet fuel than they were a year ago. Delta, jetBlue and American have all raised fees, fares, or both. Trucking costs were up 7% annually in September and private sector wages and salaries in the September quarter rose 3.1%....'

Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave

In other words...if you think these rate rises are going to stop soon? You might want to think again.


And for those Trumpbots who think ZeroHedge is a left leaning site?

LOL...think again.

since Fed's job is to control inflation why would they allow any significant inflation???

Because they can’t predict future price changes perfectly an they can’t predict shocks at all, and there is a lag between the FED’s actions and the effects of those actions.

oh so you admit they can control inflation just not in a timely or precisely way but over the long term it will average 2-4% as it has for the last 40 years?

That's a rather specific claim to infer from my broad statement.
So let me be more precise:
The FED attempts to manage inflation. Because they cannot perfectly predict business cycles and cannot predict shocks at all, There will still sometimes be significantly high inflation or even deflation. The economy is not under their "control," and at best they can mitigate undesirable results.

 

[AVG-JOE]

The WSJ said the market would crash on day 1 of a Trump presidency.

I don't remember that, but it sounds like an intriguing story! Got link?

 

[AVG-JOE]

Inflation is a concern, but deficit spending is what will bring sadness and gnashing of teeth to the taxpayers of the future.

Trump's Swelling Budget Deficits Lead to Record Treasury-Bond Sales