5 ms·

"6% indicated they experience price increases on everyday goods and services. Notably, they pointed to on groceries (96%), gas (93%), dining out (57%), and clot

"6% indicated they experience price increases on everyday goods and services. Notably, they pointed to on groceries (96%), gas (93%), dining out (57%), and clothing (42%)" This is a poorly conducted survey if it's trying to show inflation is a problem. This response would be accurate even if inflation was just 2%. The concern isn't inflation but the amount of inflation.

mywittyname 5y ago
Nominal inflation is fairly well hidden from people. The prices of most goods remain relatively static, or at least stay within a narrow band over an annual cycle. Producers have contracts for fixed prices on inputs and often outputs, so their prices are often fixed for a term. Frosted Flakes may remain $3.99 a box for five years, while a price increase to $4.49 is introduced gradually through sales and promotions. So if people are experiencing inflation in the short term, that's notable. Now, it's important to differentiate between inflation due to supply constraints vs. inflation due to long-term cost increases on inputs. For example, lumber is hella expensive right now, but it's probably not going to remain at the levels it is at in the long term. Whereas the cost increases of corn might be permanent.
- sjg007 5y ago
  67% of field corn is used for ethanol or animal feed. But regardless, only 10% of the price change in wholesale corn is passed on to consumers: https://www.ers.usda.gov/amber-waves/2008/february/corn-prices-near-record-high-but-what-about-food-costs/ https://www.ers.usda.gov/amber-waves/2008/february/corn-pric... And the government heavily subsidizes crops.
  - mywittyname 5y ago
    The issue is not really how much of the price increase are passed along to consumers, rather, are these prices increases permanent?
    - sjg007 5y ago
      Doubtful. Electric autos will decrease demand for ethanol. The Govt will increase subsidizes as well to provide price stability.
- anotherman554 5y ago
  At my local supermarket the price for food varies week to week depending on whether an item is on sale. For example sometimes items are "2 of 3.00" and sometimes they are 2.00 each. Unless someone is keeping records it would be hard to gauge.
halsom 5y ago
It’s a propaganda piece. The point is to instill poor people with a fear of inflation to promote sentiment against redistribution, which is done by relating it with their everyday lives. Quality reporting is not the priority.
CarelessExpert 5y ago
Just a quick correction due to a copy-and-paste error, the article quote is: "86% indicated they experience price increases on everyday goods and services." That said, I agree, inflation isn't a problem, the rate of inflation is. I also think folks, right now, are confusing price increases due to supply or demand shocks with inflation. Housing, cars, computer chips, and many other products are experiencing a mix of a supply shock and a demand shock as last year's decisions to reduce production have bitten us as demand is coming roaring back and production can't be instantaneously re-adjusted for that demand. That is causing a spike in prices that's rippling through the economy in various ways, from increases in prices of lumber to a spike in used car demand. This is a fleeting effect that'll go on until supply chains catch up. The problem is the outcome looks the same: price increases. But the policy response has to be very very different.

mywittyname 5y ago

Nominal inflation is fairly well hidden from people. The prices of most goods remain relatively static, or at least stay within a narrow band over an annual cycle. Producers have contracts for fixed prices on inputs and often outputs, so their prices are often fixed for a term. Frosted Flakes may remain $3.99 a box for five years, while a price increase to $4.49 is introduced gradually through sales and promotions. So if people are experiencing inflation in the short term, that's notable. Now, it's important to differentiate between inflation due to supply constraints vs. inflation due to long-term cost increases on inputs. For example, lumber is hella expensive right now, but it's probably not going to remain at the levels it is at in the long term. Whereas the cost increases of corn might be permanent.

sjg007 5y ago
67% of field corn is used for ethanol or animal feed. But regardless, only 10% of the price change in wholesale corn is passed on to consumers: https://www.ers.usda.gov/amber-waves/2008/february/corn-prices-near-record-high-but-what-about-food-costs/ https://www.ers.usda.gov/amber-waves/2008/february/corn-pric... And the government heavily subsidizes crops.
- mywittyname 5y ago
  The issue is not really how much of the price increase are passed along to consumers, rather, are these prices increases permanent?
  - sjg007 5y ago
    Doubtful. Electric autos will decrease demand for ethanol. The Govt will increase subsidizes as well to provide price stability.
anotherman554 5y ago
At my local supermarket the price for food varies week to week depending on whether an item is on sale. For example sometimes items are "2 of 3.00" and sometimes they are 2.00 each. Unless someone is keeping records it would be hard to gauge.

halsom 5y ago

It’s a propaganda piece. The point is to instill poor people with a fear of inflation to promote sentiment against redistribution, which is done by relating it with their everyday lives. Quality reporting is not the priority.

CarelessExpert 5y ago

Just a quick correction due to a copy-and-paste error, the article quote is: "86% indicated they experience price increases on everyday goods and services." That said, I agree, inflation isn't a problem, the rate of inflation is. I also think folks, right now, are confusing price increases due to supply or demand shocks with inflation. Housing, cars, computer chips, and many other products are experiencing a mix of a supply shock and a demand shock as last year's decisions to reduce production have bitten us as demand is coming roaring back and production can't be instantaneously re-adjusted for that demand. That is causing a spike in prices that's rippling through the economy in various ways, from increases in prices of lumber to a spike in used car demand. This is a fleeting effect that'll go on until supply chains catch up. The problem is the outcome looks the same: price increases. But the policy response has to be very very different.