Inflation Highest Since 1991, Outpacing Income Growth

[Weatherman2020]

I know, I know. The Joe Cult will tell us this is a good thing, except of course those that blame Trump.

Inflation is at the highest point since 1991 and it's growing faster than your paycheck

Even if you get a raise at your job this year to cap off all that stimmy money the government gave you, you will likely be poorer when everything is said and done:

notthebee.com

 

[BlindBoo]

To get a sense of what’s happening, let’s look at airfares.

Once the Covid-19 pandemic began last spring, demand for travel plummeted. Folks canceled tickets en masse, delayed vacations and hunkered down as stay-at-home orders took effect. This, of course, led to airfare prices to drop precipitously.

In April 2020, for instance, airfares fell 24% year over year, and they would spend most of the rest of 2020 at these depressed levels. When you compared airline ticket prices in the time of Covid-19 to prices from the before-times, they were typically about 25% less expensive.

But once a year passes, these year-over-year comparisons turn: The June CPI report, for instance, compared vaccine-era airline prices to what they were after Covid-19 struck. So it’s not terribly surprising that June 2021 airline prices were almost 25% higher than a year before, if only because so few people were buying tickets then.

This is one of the key points that the Fed has been pounding away at: You must pay attention to these so-called base effects. Now that vaccines are widely available and Covid-19 cases are dropping, more people will fly. Yes, airline prices are much higher than a year ago, but they remain cheaper than where they were pre-pandemic.

Why Is Inflation So High?

Investors got some good news on Tuesday after a popular measure of inflation came in lower than expected in November. The Labor Department reported that the consumer price index (CPI) rose 7.1% in November, down from a 7.7% gain in October and less than the 7.3% increase economists were expecting

www.forbes.com

 

[LuckyDuck]

When a nation's debt exceeds its GDP, it leads to runaway inflation. A typical government's response is then to "print more money," making the currency of less value. We crossed that line and I see us becoming another Venezuela, where their currency is worthless and the people have to bring in large sums of currency to pay for simple things like a chicken or beef. End result, is that once the money is gone because of paying out exorbitant sums for what used to be easily affordable, you end up homeless and when food banks run short on food, you starve.
What do people that live in such nations do? They pack up and sneak over our border to seek a better life for their family.....but wait.....as we are now experiencing the beginning of what they had in their nations, they are fleeing to a nation that will be in the same situation that they left and they won't have solved anything.

 

[norwegen]

With Bidenomics, we're going to need more than just a slight Indian accent to go to a 7-11 or a Dunkin' Donuts. We're going to need a whole wheelbarrow full of it.

 

[Harpy Eagle]

To get a sense of what’s happening, let’s look at airfares.

Once the Covid-19 pandemic began last spring, demand for travel plummeted. Folks canceled tickets en masse, delayed vacations and hunkered down as stay-at-home orders took effect. This, of course, led to airfare prices to drop precipitously.

In April 2020, for instance, airfares fell 24% year over year, and they would spend most of the rest of 2020 at these depressed levels. When you compared airline ticket prices in the time of Covid-19 to prices from the before-times, they were typically about 25% less expensive.

But once a year passes, these year-over-year comparisons turn: The June CPI report, for instance, compared vaccine-era airline prices to what they were after Covid-19 struck. So it’s not terribly surprising that June 2021 airline prices were almost 25% higher than a year before, if only because so few people were buying tickets then.

This is one of the key points that the Fed has been pounding away at: You must pay attention to these so-called base effects. Now that vaccines are widely available and Covid-19 cases are dropping, more people will fly. Yes, airline prices are much higher than a year ago, but they remain cheaper than where they were pre-pandemic.

Why Is Inflation So High?

Investors got some good news on Tuesday after a popular measure of inflation came in lower than expected in November. The Labor Department reported that the consumer price index (CPI) rose 7.1% in November, down from a 7.7% gain in October and less than the 7.3% increase economists were expecting

www.forbes.com

It is not tracked, but it would be interesting to see how this years numbers compare to 2019. That would give us a better idea of how bad things really are

 

[BlindBoo]

When a nation's debt exceeds its GDP, it leads to runaway inflation. A typical government's response is then to "print more money," making the currency of less value. We crossed that line and I see us becoming another Venezuela, where their currency is worthless and the people have to bring in large sums of currency to pay for simple things like a chicken or beef. End result, is that once the money is gone because of paying out exorbitant sums for what used to be easily affordable, you end up homeless and when food banks run short on food, you starve.
What do people that live in such nations do? They pack up and sneak over our border to seek a better life for their family.....but wait.....as we are now experiencing the beginning of what they had in their nations, they are fleeing to a nation that will be in the same situation that they left and they won't have solved anything.

There is no runaway inflation. The Year to Year comparison doesn't accurately reflect the price drop from 2 years ago that the Pandemic caused last year. For example the price of gas in May 2020 was a little less than 2 bucks and in May 2021 it is a little over 3 bucks. In May 2019 gas was just under 3 bucks.

U.S. All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon)

Gasoline Inflation in the United States (1968-2024)

The average price of gasoline jumped 1.3% in the 12 months ending March as compared to the annual decrease of 3.9% in February, according to the most recent inflation data published Apr. 10, 2024, by the U.S. Labor Department's Bureau of Labor Statistics (BLS). Gasoline is an important category...

www.usinflationcalculator.com

 

[LuckyDuck]

There is no runaway inflation. The Year to Year comparison doesn't accurately reflect the price drop from 2 years ago that the Pandemic caused last year. For example the price of gas in May 2020 was a little less than 2 bucks and in May 2021 it is a little over 3 bucks. In May 2019 gas was just under 3 bucks.

U.S. All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon)

Gasoline Inflation in the United States (1968-2024)

The average price of gasoline jumped 1.3% in the 12 months ending March as compared to the annual decrease of 3.9% in February, according to the most recent inflation data published Apr. 10, 2024, by the U.S. Labor Department's Bureau of Labor Statistics (BLS). Gasoline is an important category...

www.usinflationcalculator.com

Just wait.....

 

[BlindBoo]

Just wait.....

For what? The Great Duh-fault?

 

[Gabe Lackmann]

Supply lines are already strained. The scamdemic. China, who make literally everything are in the midst of an energy crisis. Inflation will be pushed further when winter comes as the lockdowns will resume and supply lines are strained even further.
Stick up while you can.

 

[Samofvt]

As the fed prints more money, inflation occurs. The stock market seems to have followed inflationary trends: those stocks are a commodity just like anything, especially considering (how many?) people's life savings and retirement plans are invested in there: the market almost "Has" to keep up.

The question I have is: at what point does inflation outstrip the stock market? The reality factor is that when things get more expensive, daddy is going to have to cash in some fungibles at some point if he's going to afford to keep his candy girl happy. How fast and at what point will that happen?

 

[Deplorable Yankee]

I know, I know. The Joe Cult will tell us this is a good thing, except of course those that blame Trump.
View attachment 548258

Inflation is at the highest point since 1991 and it's growing faster than your paycheck

Even if you get a raise at your job this year to cap off all that stimmy money the government gave you, you will likely be poorer when everything is said and done:

notthebee.com

A couple months ago The experts on usmb told us that a little bout of inflation is only temporary so shut up bigots ..the experts and the white house said so!
And also Drumph !!

 

[Faun]

I know, I know. The Joe Cult will tell us this is a good thing, except of course those that blame Trump.
View attachment 548258

Inflation is at the highest point since 1991 and it's growing faster than your paycheck

Even if you get a raise at your job this year to cap off all that stimmy money the government gave you, you will likely be poorer when everything is said and done:

notthebee.com

a) inflation is currently 5.3%. It peaked at 5.6% in 2008. So no, inflation is not higher now than it has been since 1991; and

b) as always, you prove to be an abject imbecile.

 

[Faun]

Just wait.....

Shit, I'm still waiting for Bush to find stockpiles of WMDs in Iraq. I recall then when, "just wait.... was the rightie mantra.

 

[Turtlesoup]

To get a sense of what’s happening, let’s look at airfares.

Once the Covid-19 pandemic began last spring, demand for travel plummeted. Folks canceled tickets en masse, delayed vacations and hunkered down as stay-at-home orders took effect. This, of course, led to airfare prices to drop precipitously.

In April 2020, for instance, airfares fell 24% year over year, and they would spend most of the rest of 2020 at these depressed levels. When you compared airline ticket prices in the time of Covid-19 to prices from the before-times, they were typically about 25% less expensive.

But once a year passes, these year-over-year comparisons turn: The June CPI report, for instance, compared vaccine-era airline prices to what they were after Covid-19 struck. So it’s not terribly surprising that June 2021 airline prices were almost 25% higher than a year before, if only because so few people were buying tickets then.

This is one of the key points that the Fed has been pounding away at: You must pay attention to these so-called base effects. Now that vaccines are widely available and Covid-19 cases are dropping, more people will fly. Yes, airline prices are much higher than a year ago, but they remain cheaper than where they were pre-pandemic.

Why Is Inflation So High?

Investors got some good news on Tuesday after a popular measure of inflation came in lower than expected in November. The Labor Department reported that the consumer price index (CPI) rose 7.1% in November, down from a 7.7% gain in October and less than the 7.3% increase economists were expecting

www.forbes.com

WHICH has nothing to do with the inflation index---printing money and spending like drunken sailors causes inflation and a whole bunch of suffering to come down the pike. The poor elderly will be hit the hardest.

 

[Faun]

WHICH has nothing to do with the inflation index---printing money and spending like drunken sailors causes inflation and a whole bunch of suffering to come down the pike. The poor elderly will be hit the hardest.

 

[Stann]

Yes, I wish trump didn't waste all that money when he racked up 7.9 trillion dollars in new deficit spending.

 

[the other mike]

Joe Bonamassa tickets - $600 each ?

We're fucked.

 

[the other mike]

Yes, I wish trump didn't waste all that money when he racked up 7.9 trillion dollars in new deficit spending.

That was to pay his defense team for handling your
phony impeachment trial.

 

[Faun]

That was to pay his defense team for handling your
phony impeachment trial.

Phoney?? Trump solicited a foreign leader to help him with his re-election campaign. That's a crime for which he was rightfully impeached.

 

[the other mike]

Phoney?? Trump solicited a foreign leader to help him with his re-election campaign. That's a crime for which he was rightfully impeached.