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I rent, just got my rent increase which is annual and it's 6% (Los Angeles area). Everywhere around I see prices rising more like 4-5%. Inflation is more like 5% going by anecdotal evidence. Yet, the government insists inflation is under 2% and now they are going to CUT interest rates, madness.
I rent, just got my rent increase which is annual and it's 6% (Los Angeles area). Everywhere around I see prices rising more like 4-5%. Inflation is more like 5% going by anecdotal evidence. Yet, the government insists inflation is under 2% and now they are going to CUT interest rates, madness.
Federal government long ago changed how inflation is calculated. Yes, for many the kooky numbers that come out of Washington, D.C. bear little to no resemblance to their own finances, but it keeps the markets happy and affects federal spending such as Cost Of Living Adjustments (COLA) for SS and other programs.
If it is of any consolation to you there are persons who create and track shadow inflation rates. That is what US inflation would be were the 1990 and other changes not made.
The problem here is with the stock market losing money in real terms (a 100% FFFFX FIdelity Freedom 2040 fund returned only 3% since 2018 and if we assume 5% inflation that is a -2% real return) and incomes rising 1-3% at most what is the solution forward?
This isn't the best economy ever, it sounds more like the worst economy ever! Geez!
Just more fuel for my contention that most official numbers are calculated with immense effort, to carefully-planned methodology and standards, with all due seriousness by whole departments of very bright and dedicated people...
...and may as well be made up by a Magic 8-Ball for all their relevance to the real situation(s).
I rent, just got my rent increase which is annual and it's 6% (Los Angeles area). Everywhere around I see prices rising more like 4-5%. Inflation is more like 5% going by anecdotal evidence. Yet, the government insists inflation is under 2% and now they are going to CUT interest rates, madness.
If we let deflation do its job, everything would cost much less, including your rent. Why has housing, education, healthcare, transportation...become so expensive? Because we spend so much money trying to defeat the corrective price influence of deflation (see 2001-2019).
Deflation is a painful medicine, but it is a medicine. Of course, people in power don't want to see their million dollar house cut down to $250,000. That is part of their retirement plan, inflation of housing value. We spent trillions in 2008-2009 to avoid deflation. Did it work, or did it just delay it?
I don't know about others, I really don't know how people manage to survive in this city as astronomically expensive as it already is and prices rising every year at 5-7% on top of that... it is reaching critical mass in my opinion.
When I get a big raise in costs like this my first reaction is to cut back on other things discretionary... that means some business elsewhere is NOT getting my money and if everyone else thinks like me it is bad news for the economy.
Perhaps others don't think like me because I am extremely frugal and monitor my costs pretty intensely even though I earn a lot I am hoping to retire early so any increase in costs means it is eating into the amount I get to save annually.
The problem here is with the stock market losing money in real terms (a 100% FFFFX FIdelity Freedom 2040 fund returned only 3% since 2018 and if we assume 5% inflation that is a -2% real return) and incomes rising 1-3% at most what is the solution forward?
This isn't the best economy ever, it sounds more like the worst economy ever! Geez!
My inflation isn’t anywhere near 5% and the govt would be doing a disservice by posting a national number that matches the col for Los Angeles. Maybe it would be worth the time to read up on how the numbers are calculated and what makes up the numbers
I rent, just got my rent increase which is annual and it's 6% (Los Angeles area). Everywhere around I see prices rising more like 4-5%. Inflation is more like 5% going by anecdotal evidence. Yet, the government insists inflation is under 2% and now they are going to CUT interest rates, madness.
They are never going to give an accurate inflation number. Every single item I buy at the grocery store is between 5-15% more expensive than it was last year. A couple of items have actually gone up over 20% with multiple increases this same year, and the product size is actually smaller.
Reporting real inflation numbers would make their entire con job harder to pull off because Powell wouldn't be able to stand up there and say he fears too-low inflation.
I rent, just got my rent increase which is annual and it's 6% (Los Angeles area). Everywhere around I see prices rising more like 4-5%. Inflation is more like 5% going by anecdotal evidence. Yet, the government insists inflation is under 2% and now they are going to CUT interest rates, madness.
LA. That says it all. While I’m sure in certain huge cities rent (can be independent from home price changes) and home prices are rising that is not the case in a lot of other parts of the country where home prices are stagnant and that is reflected in the rent (after recovery stagnant home prices are not unwelcomed). A lot of these big cities have raised their property, local and state taxes and this is reflected in increased housing and other costs versus states with lower taxes or no taxes.
While food prices have increased there are a lot of substitute goods that negate the increase for a household. I used to pay 699 plus tax for a standard IPad 7 years ago and now pay $279 plus tax at Walmart for the standard (non pro) Ipad model released 7-10 months before. Same with led tv costs being halved from ten years ago. A lot of cheaper cell phone providers outside of ATT, Verizon and sprint have popped up cutting cell phone service costs.
LA. That says it all. While I’m sure in certain huge cities rent (can be independent from home price changes) and home prices are rising that is not the case in a lot of other parts of the country where home prices are stagnant and that is reflected in the rent (after recovery stagnant home prices are not unwelcomed). A lot of these big cities have raised their property, local and state taxes and this is reflected in increased housing and other costs versus states with lower taxes or no taxes.
While food prices have increased there are a lot of substitute goods that negate the increase for a household. I used to pay 699 plus tax for a standard IPad 7 years ago and now pay $279 plus tax at Walmart for the standard (non pro) Ipad model released 7-10 months before. Same with led tv costs being halved from ten years ago. A lot of cheaper cell phone providers outside of ATT, Verizon and sprint have popped up cutting cell phone service costs.
You can't eat or live in a cell phone or TV
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