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kpierce | 4 years ago

Thanks for posting the url. You start looking at the numbers on a sub level and its not as shocking. 12 month change.

Gasoline (all types) 42.7% - Huge dip when the pandemic happened now its back to pre covid prices.

Natural gas (piped) 21.1% - Same issue.

Used cars and trucks 31.9% - New cars are being made because of a ship shortage.

Meats, poultry, fish, and eggs 8.0% - a labor problem because its hard to get that many people to work in spaces like that and not get sick.

discuss

landa|4 years ago

I'm sorry, but this is just wrong. Natural gas prices are higher than I've ever seen them, only comparable to one very cold winter year. This is not just a return to pre-Covid prices, this is due to government policy. Same with crude oil prices. Just look at the five year chart for NG1:

https://www.bloomberg.com/quote/NG1:COM

ceejayoz|4 years ago

Zoom the chart out a bit more (https://www.marketwatch.com/investing/future/ng.1). 2009 and 2014 see higher prices than we're at now.

bko|4 years ago

Just look at the personal savings rate. It shot up from less than 10% to over 30% and now back down. This was the stimulus checks which people pocketed and used to buy financial assets. That's another form of inflation but the "good" kind that us rich capital holders like. Eventually this money will re-enter the market and push up prices for every day goods.

Also official inflation rate isn't based on a fixed basket of goods, but changes. For instance, if chicken becomes more expensive, they weigh beef more. But pretty much anyone that's been to a restaurant in the last 6 months can tell you that prices are up a lot more than 5%. I guess just eat out less, right?

https://fred.stlouisfed.org/series/PSAVERT

OldHand2018|4 years ago

> I guess just eat out less, right?

Yes.

Adjusting behavior based on increasing prices (or, alternately, increasing wages) is normal.

gibsonf1|4 years ago

Adding trillions to the money supply, of course, has no impact whatsoever?

whimsicalism|4 years ago

People understand that inflation is a function of both money supply and velocity right?

Well I guess no, as almost every comment on this thread seems to have no idea.

https://fred.stlouisfed.org/series/M2V

martinko|4 years ago

Economists would argue that the 'printed' money is actually reserves at the central bank, and thus has no impact on price levels. I myself am less certain about the overall dynamics.