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Inflation Beyond the Stars Thread for April 12


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2022 Apr 12, 12:49am   161,675 views  1,712 comments

by AmericanKulak   ➕follow (10)   ignore (3)  

Since we know the numbers are going to suck since Peppermint Patty is leading the Amen Corner Media to blame Putin for it:
https://patrick.net/post/1344548/2022-04-11-putin-s-price-hike-failing-administrati

Frankly, I prefer my spaceship to have big tits and not fake inflated ones.

EDIT - numbers drop:
America goes back to the 80s: Surging gas prices and higher rents push inflation to 41-year high of 8.5% as White House blames it on Putin invading Ukraine
The consumer price index rose 8.5% in March from a year ago, the fastest increase since December 1981
Housing costs, which make up about a third of the index, have escalated and show no signs of cooling
Gasoline prices soared 49% in March from a year ago as the war in Ukraine rocked energy markets
Biden's administration tried to get ahead of the dire inflation news by blaming Russian leader Vladimir Putin
But Republicans place the blame for soaring prices on 'Democrats' reckless spending and failed policies'

https://www.dailymail.co.uk/news/article-10711311/Inflation-soars-new-41-year-high-8-5.html?source=patrick.net

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1668   AmericanKulak   2025 Apr 21, 9:40pm  

And if we don't slap them now, future Republicans will drag their heels, so now it is.

If Rs were more trustworthy about shutting down borders, not debt spending, etc...

Moderate Republicans brought this upon themselves with "Comprehensive Immigration Reform" and not repealing Obamacare and other nonsense.

Fortunately, in the future Republicans will learn a lesson and deliver, not just talk.
1672   Eric Holder   2025 Apr 25, 1:42pm  

The_Deplorable says






And a certain guy ran on reducing the inflation....
1674   AD   2025 Apr 27, 9:22pm  

The_Deplorable says






True, as M2 went from $16 trillion in April 2020 to now $27 trillion. Bond funds like Vanguard Total Bond Fund ETF took a dive of at least 20%.

Hopefully those close to retirement at least kept up with inflation such as their retirement accounts (401K and IRAs) were 40% stocks and 60% bonds, like Vanguard Lifestrategy Conservative Growth Fund.

.
1675   HeadSet   2025 Apr 28, 6:48am  

AD says

Hopefully those close to retirement at least kept up with inflation such as their retirement accounts (401K and IRAs) were 40% stocks and 60% bonds

If you expect inflation, why be heavier into bonds? Wouldn't the stock prices appreciate with inflation while the bond principle and fixed interest lose value to inflation? Also, won't inflation tend to raise rates which would damage the actual bond yields?
1676   stereotomy   2025 Apr 28, 1:40pm  

HeadSet says

AD says


Hopefully those close to retirement at least kept up with inflation such as their retirement accounts (401K and IRAs) were 40% stocks and 60% bonds

If you expect inflation, why be heavier into bonds? Wouldn't the stock prices appreciate with inflation while the bond principle and fixed interest lose value to inflation? Also, won't inflation tend to raise rates which would damage the actual bond yields?

If you buy bonds to hold to maturity, you get the increased yield, and you lose no principal since it is returned to you at the maturity date of the bond.

Bond funds are a different matter - here, you get better yields but the hit on the value of the bonds is immediate. This is because these funds are constantly buying and selling bonds in the secondary market.
1678   HeadSet   2025 Apr 28, 5:27pm  

stereotomy says

If you buy bonds to hold to maturity, you get the increased yield, and you lose no principal since it is returned to you at the maturity date of the bond.

No doubt, but by the time maturity hits that principle has inflated away in value. Stocks prices normally would have risen with inflation, along with the dividends.
1679   AD   2025 Apr 28, 8:46pm  

HeadSet says

AD says


Hopefully those close to retirement at least kept up with inflation such as their retirement accounts (401K and IRAs) were 40% stocks and 60% bonds

If you expect inflation, why be heavier into bonds? Wouldn't the stock prices appreciate with inflation while the bond principle and fixed interest lose value to inflation? Also, won't inflation tend to raise rates which would damage the actual bond yields?


Good point but there is some risk mitigation with Vanguard balanced funds such as having the duration average is around 7 years and they use a bond ladder strategy.

I think annual inflation will remain between 2.5% and 3% for this prolong cycle. The government would consider that the optimal way (or least painful way) to inflate out of a debt crisis.

.
1680   AD   2025 Apr 28, 8:59pm  

HeadSet says

stereotomy says


If you buy bonds to hold to maturity, you get the increased yield, and you lose no principal since it is returned to you at the maturity date of the bond.

No doubt, but by the time maturity hits that principle has inflated away in value. Stocks prices normally would have risen with inflation, along with the dividends.


So the balanced fund strategy like 60% stocks / 40% bonds should be avoided ?

.
1681   HeadSet   2025 Apr 29, 7:26am  

AD says

So the balanced fund strategy like 60% stocks / 40% bonds should be avoided ?

If you are expecting inflation, the balance should be more like 60% stocks and 40% bonds.
1682   zzyzzx   2025 Apr 29, 11:17am  

Even dog poop bag hit by inflation (note smaller quantity of bag now included):


1683   zzyzzx   2025 Apr 29, 11:26am  

10oz less for the same price:


1684   AD   2025 Apr 30, 8:02pm  

The Federal Reserve uses Personal Consumption Expenditure to make decisions based on inflation.

Annual inflation based on PCE ending March 2025 came in today at 2.3%. The February 2025 annual inflation figure was adjusted from 2.5% to 2.7% as reported today.

Since October 2023, annual inflation has remained below 3%. I consider that means inflation is finally tamed.
.
1685   AD   2025 May 1, 3:33pm  

Bananas went up at Walmart Front Beach Rd from 49 cents to 54 cents, and it may be more due to the 10% tariff then on a drop in the Dollar Index.

Eggs have gone down in price thanks to Trump's policies with the USDA, etc.

Now they are about 36 cents an egg for 18 eggs, whereas they were 50 cents an egg during the last few months of Birdbrain Biden's administration.
1686   AD   2025 May 4, 11:21pm  



1688   Patrick   2025 May 13, 6:55am  

https://ground.news/article/72911401-f0dc-480e-baac-6d35ea650e8a


The U.S. Annual inflation rate rose 2.3% in April 2025, marking the slowest increase in over four years, according to Labor Department data.

This cooling followed price declines in February and March and coincided with the effect of some of President Trump's tariffs imposed earlier this year.

Key details show monthly consumer prices increased 0.2% from March to April, with grocery prices falling 0.4%, driven by a 12.7% drop in egg prices, the largest since September 2020.
1690   AmericanKulak   2025 May 13, 11:42am  

The funniest thing was when Dems and I think some Realtors were trying to blame used house prices on Tariffs.

"This house last upgraded when OJ was on trial got more expensive because of Trump's Tariffs on CHYna!"
1691   AD   2025 May 13, 2:53pm  

Patrick says

The U.S. Annual inflation rate rose 2.3% in April 2025, marking the slowest increase in over four years, according to Labor Department data.


Not sure how inflation will fare with the 90 day trade deal of 30% tariffs on Chinese imports (and 10% on USA exports to China).

Even bananas at Walmart on Front Beach Rd went up from 49 cents to 54 cents a pound recently after Trump announcing a 10% tariff on any import.

But at least gas prices have steadied and eggs are now around 30 cents each (versus 50 cents each back in last December).

.
1695   zzyzzx   2025 May 14, 7:43am  

A lot less ice cream than pictured:


1696   AD   2025 May 14, 11:24am  



1697   AD   2025 May 14, 11:27am  

I believe starting hourly wage in Panama City Beach's McDonalds is at least $14 an hour. A Big Mac meal costs around $10.60 at the McDonald's by the Walmart on Front Beach Road, so the ratio of the cost of a Big Mac Meal to the hourly wage is around 0.8 for Panama City Beach.


1698   AD   2025 May 14, 11:36am  

I loved up for McDondalds on Glendale Ave in Los Angeles a large Big Mac Meal is $11.59, and I assume the starting hourly wage is $20 for McDondalds in Los Anglese so the ratio is 11.59/20 or 0.58.
1699   Fortwaye   2025 May 14, 6:20pm  

mcdonald’s isn’t food. it’s an insult to food
1700   Patrick   2025 May 16, 11:26am  

https://slaynews.com/news/us-wholesale-prices-crush-economists-predictions-record-largest-drop-5-years/


Wholesale prices in the United States have just plunged to their lowest level in five years, marking a major win for President Donald Trump’s economic agenda.

The Producer Price Index (PPI) fell 0.5% in April, the U.S. Bureau of Labor Statistics (BLS) reported on Thursday.

The index measures the average change over time in selling prices received by domestic producers.

The figure marks the biggest PPI drop in five years
1701   AD   2025 May 16, 12:58pm  

Patrick says

https://slaynews.com/news/us-wholesale-prices-crush-economists-predictions-record-largest-drop-5-years/



Wholesale prices in the United States have just plunged to their lowest level in five years, marking a major win for President Donald Trump’s economic agenda.

The Producer Price Index (PPI) fell 0.5% in April, the U.S. Bureau of Labor Statistics (BLS) reported on Thursday.

The index measures the average change over time in selling prices received by domestic producers.

The figure marks the biggest PPI drop in five years



Now that tariffs are in place, the PPI will increase at least steadily. There is at least a 10% tariff on any imported item.

Bakeries count toward PPI so the bakery that only imports bananas from Costa Rica and Guatemala will have a 10% extra cost because of the tariff when it sells banana nut bread.

.
1703   Booger   2025 May 17, 4:20am  

AD says

Bakeries count toward PPI so the bakery that only imports bananas from Costa Rica and Guatemala will have a 10% extra cost because of the tariff when it sells banana nut bread.


Tarrifs are imposed at the wholesale level, not the retail level.
1704   RWSGFY   2025 May 17, 8:35am  

Remember when Kamala promised to control prices? Pepperidge farm remembers.


1705   AD   2025 May 17, 4:58pm  



1706   AD   2025 May 17, 5:03pm  

RWSGFY says


Remember when Kamala promised to control prices? Pepperidge farm remembers.





70% of Walmart non-food merchandise is from the Chicoms.

I can see electronics like cheap Chromebooks being the case, but what else ?

I would think clothing like shirts and underwear would come from Central America, Bangladesh, Vietnam, and India.

I remember in 1992 the Walmart in Panama City Beach had a lot of Made in USA signs posted.
.
1707   AD   2025 May 17, 9:32pm  

From Boca Raton News in 1976 ... $50 in 1976 is around $280 in today's money




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