patrick.net

MOSCOW, Dec 14 (Reuters) - Soviet President Vladimir Pukin issued a rare apology on Thursday when a pensioner complained to him about the price of eggs.

During Pukin's end-of-year question and answer session with the media and with members of the public calling in from across the USSR, pensioner Irina Akopova was shown seated at her kitchen table and addressing the president by video link.

She complained that prices for eggs, chicken breasts and wings had all skyrocketed.

"Vladimir Vladimirovich, take pity on pensioners! We don't get millions in our pensions. Sort this out - we have no one to turn to," she said. "I'm very grateful to you, I'm counting on you to help."

The question reflected real concern among Soviets at the cost of living, and came after Pukin had already acknowledged that inflation may approach 8% this year.

"I apologise for this, but this is a failure of the government's work... I promise that the situation will be corrected in the near future," Pukin said.

The marathon Q+A is a format that gives Putin the chance to show he is sympathetic with ordinary people's worries and is ordering the relevant officials to sort them out.

The government this week said it would exempt 1.2 billion eggs from import duty in the first half of next year to try and rein in prices that have risen more than 40% this year.

-- Reuters

https://slaynews.com/news/biden-most-restrictive-offshore-oil-drilling-plan-history/

Democrat President Joe Biden has just unveiled new plans to impose massive restrictions on offshore oil drilling.

According to the announcement, only three offshore drilling leases would be authorized over the next five years.

It marks the lowest number in U.S. history.

As part of the plan, “green” energy sources will be aggressively pursued instead.

This will cause yet more Bidenflation.

Patrick says

This will cause yet more Bidenflation.

Orange Lady (Psaki) said it best in response to the Fox News White House reporter's question about energy supply. Orange Lady said by paying higher gas prices, we are upholding our values.

They want gas prices to stay elevated. Its a Democrat government mandate as far as pushing for less carbon based energy (mostly gasoline consumption) and more solar and wind, as well as electric vehicles.

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https://thehill.com/homenews/nexstar_media_wire/4358987-rent-expected-to-drop-in-several-us-cities-as-markets-near-oversupply-real-estate-report/

(NEXSTAR) – Renters may finally catch a break next year.

Of the 100 cities analyzed in Zumper’s Annual Rent Report, which was released this week, 55 have seen rent prices drop since last year. An additional 17 are flat year-over-year.

The report predicts rent prices will keep “softening,” at least through the first half of 2024.

Part of the reason for dropping prices, according to Zumper, is a recent increase in supply, as new apartment buildings and complexes keep opening in fast-growing cities. Real-time data providers like Zillow and ApartmentList also show rent growth for new apartments tumbling.

Nationwide, the cost of renting a one-bedroom dropped by a tenth of a percent in 2023, Zumper reports, but is expected to drop by larger margins in 2024 in cities where supply has caught up with demand. Sun Belt cities, from Phoenix to Austin to Orlando, have all seen one-bedroom rents drop between 5% and 11%.

From NY Post article. Looks like then inflation will not be a major priority or factor in 2024 if this is true.

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“Since 2009, this has been 100% artificial, unprecedented money printing and deficits; $27 trillion over 15 years, to be exact. This is off the charts, 100% artificial, which means we’re in a dangerous state,” Harry Dent told Fox News Digital.

“I think 2024 is going to be the biggest single crash year we’ll see in our lifetimes.”

ad says

Nationwide, the cost of renting a one-bedroom dropped by a tenth of a percent in 2023, Zumper reports, but is expected to drop by larger margins in 2024 in cities where supply has caught up with demand. Sun Belt cities, from Phoenix to Austin to Orlando, have all seen one-bedroom rents drop between 5% and 11%.

That means it's a great time to buy! Buy now or be priced out forever!

ad says

From NY Post article. Looks like then inflation will not be a major priority or factor in 2024 if this is true.

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“Since 2009, this has been 100% artificial, unprecedented money printing and deficits; $27 trillion over 15 years, to be exact. This is off the charts, 100% artificial, which means we’re in a dangerous state,” Harry Dent told Fox News Digital.

“I think 2024 is going to be the biggest single crash year we’ll see in our lifetimes.”

Harry Dent is a perma-bear. He’s a broken clock that’s right twice a day.

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The Federal Reserve's preferred annual inflation measure is at 2.6% as of end of November 2024. It continues to trend down. That is why I think ultimately the 30 year mortgage rate is going to steady around 5.5% in 2024 as inflation (and interest rates) subside .

https://www.bea.gov/data/personal-consumption-expenditures-price-index

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Inflation expectations over the next 10 years have not changed much over the last month or so. What has changed is the yield investors are expecting to earn above the rate of inflation. It has dropped from them wanting about 2.5% over the rate of inflation (back in October) to them wanting "only" 1.7% over the rate of inflation today. That is where the reduction/increase in rates is going to primarily come from. This is for the 10 year bond.

Misc says

to them wanting "only" 1.7% over the rate of inflation today

For me, I would want at least 0.5% real return for a 12 month CD. I would ideally want an annual real return of at least 2% for a government bond fund which invests in intermediate duration bonds. Assume average of 3% annual inflation, this fund is close to providing that 2% annual real return.
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So what do banks want for 30 year mortgage rate after inflation steadies around 2.75% ?

They want a rate of 5.75% ?

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ad says

So what do banks want for 30 year mortgage rate after inflation steadies around 2.75% ?

They want a rate of 5.75% ?

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Inflation expectations over the next 10 years is already at 2.2% annual average. Bond investors are being super greedy because they got burned loading up on long term debt during Covid. Funniest thing is that yield spreads between treasuries and junk bonds are quite narrow. I dunno what they are fucking thinking.

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Nike to cut costs by $2 billion in next 3 years.

This tells a lot as far as the economy, and mainly due to inflation.

This article tries to downplay this somewhat by claiming that consumers are also instead spending more money on experiences.

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"Customers are switching their behavior, passing up discretionary purchases — like expensive sneakers and athletic wear — for basics and experiences like concerts and travel."

https://www.yahoo.com/finance/news/nike-says-cut-2-billion-150121521.html

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Red Sea attacks could raise prices for U.S. consumers

Attacks on Red Sea shipping might raise prices for consumers because cargo carriers take longer routes to avoid dangerous waters for now.

Iran-backed Houthi rebels in Yemen first struck cargo ships with drones and missiles this month, in what they claim is retaliation for Israel’s actions in the Gaza war. The disruptions caused shipping giants Maersk, CMA CGM and COSCO to reroute shipments around the Cape of Good Hope in South Africa, maneuvers that are increasingly costly to shippers and consumers.
As of Tuesday, shipping carriers expect most services to avoid the Red Sea through China’s Lunar New Year festival, said Ryan Petersen, CEO of Flexport, a logistics technology company. The two weeks leading up to the celebrations is a peak period for shippers, who rush to deliver goods before the holiday, which starts Feb. 10.
Experts say the costs of rerouting vessels around South Africa or through the Panama Canal will increase prices for consumer goods shipped from Asia to the U.S. East Coast.
“It’s about an 8 percent longer journey, which is going to drive prices up quite a bit for ocean freight — that’s a material impact on prices for the goods themselves,” Petersen said. The rising costs will affect the price of “most of the stuff that you see in all the stores,” other than food, raw materials, and energy, he added.

Where's the fucking US Navy? Why the fuck these "houthi" fucks are not embedded into a glass parking lot yet?

RWSGFY says

"Where's the fucking US Navy? Why the fuck these "houthi" fucks are not embedded into a glass parking lot yet?"

Why don't you volunteer and lead the charge? Send us a post card from Aden if you make it that far!

I wonder how many people today would recognize the "Bagdad Bob" above.

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economy is cooling hence inflation will likely decrease more

WASHINGTON, Jan 3 (Reuters) - U.S. job openings fell to nearly a three-year low in November as the labor market gradually cools, which could pave the way for the Federal Reserve to start cutting interest rates this year.

https://www.reuters.com/markets/us/us-job-openings-fall-moderately-november-2024-01-03/

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Job openings falling back in line with the trend line ,, thanks to Wolfman at Wolfstreet website for the graph...
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ad says

GNL says

Inflation will be reported as whatever they want it to be.

yes its government reported inflation...what is your estimate of annual inflation ?

Chic-fil-a has increased prices 21% in the last 2 years. I'd say, food, housing and gas are probably the only(?) data points needed to calculate a greatly improved/accurate measure of inflation. Electronics have zero place in the inflation calculation. Cars might not have a place either because I believe prices are very much dependent on government influence/laws.

GNL says

Chic-fil-a has increased prices 21% in the last 2 years.

From what I've read there is no reported increase in their prices in 2020 and 2021. So is this increase representative of fast food
restaurant inflation from January 2020 to present day ?

https://nypost.com/2024/01/02/business/chick-fil-a-has-raised-its-prices-more-than-20-as-inflation-rages/

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The media, trying to spin Bidenomics as working, has a new refrain. "There is no wage/price spiral".

Then today's jobs report comes out for December and wages increased 4.1% year over year.

It is anyone's guess what January's will bring with what 25 States increasing their minimum wage, government employees getting the largest pay increase in 25 years, along with COLAs for everyone. People will look at January's year over year increase in wages and do a full freak out.

Misc says

government employees getting the largest pay increase in 25 years, along with COLAs for everyone.

Yep, and unfortunately too many of those government employees, along with Social Security and federal retirees will look at their increases and say "Yippee, Biden gave me a pay raise!"

HeadSet says

Yep, and unfortunately too many of those government employees, along with Social Security and federal retirees will look at their increases and say "Yippee, Biden gave me a pay raise!"

military and federal civil servants to get a 5.2% wage increase for 2024

that's 2% above annual inflation, so its not bad of an increase

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WTF do you think that will do to the inflation rate??????

Misc says

WTF do you think that will do to the inflation rate??????

guvmint-reported annual inflation is now at 3.2%

guvmint will continue to report annual inflation as trending downward at least until this november ?

any "adjustments" downward as far GDP and upward as far as inflation and unemployment will be made after november ?
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I have more faith in the Ministry of Truth (BLS). I think they will report an increase in inflation for January and then maybe trending up a bit depending on the price of oil as the unsubstantiated increase in wages creeps through to rent and OER for the rest of the year.