4 ms·

Which elements of CPI aren't indirectly tied to the cost of energy?

by baobob 4y ago

adam_arthur 4y ago
Rent, which is rising close to the fastest pace on record for the CPI. But depends how many leaps you want to take to justify its relation to energy Nothing in the breakout of the CPI data shows slowing in pretty much any category
- JumpCrisscross 4y ago
  > Rent, which is rising close to the fastest pace on record for the CPI I’m renovating a home. Shipping is higher, due to labor conditions as well as fuel costs. If I rent it out a few times a year, as I’m considering, I will price to make that back. I’m sure those with purely rental properties are similarly inclined.
  - adam_arthur 4y ago
    Yes, the economy is interconnected. I also decided to increase rent on my rentals cause the price of bread doubled and my daily sandwich got more expensive
  - qwerpy 4y ago
    I never consider my own costs when choosing how to price a rental. I will always charge market rates. If market rates are higher than my costs, great. I won't lower my rates, I'll just pocket the extra money. Similarly if market rates are lower than my costs, I can't just stubbornly keep the rates high. No one will rent from me. If that goes on for a long time I'll decide it's a non-performing asset and sell it.
    - JumpCrisscross 4y ago
      I called myself out as a marginal source of supply. I love my renovations. I don’t need the cash. If a lease can’t cover my costs, altogether, I would prefer to not rent and not risk the damage. Input costs eventually filter to the outputs.
- MrRiddle 4y ago
  Housing was/is directly affected by Covid supply shortage. Cars, chips, energy, supply shocks etc are what’s causing all this increase in CPI. I would even say there’s not much (monetary) inflation, on the contrary, deflation of the USD might break the system.
  - adam_arthur 4y ago
    Just repeating disproven mantras from a year ago. Chip supply is higher than prepandemic. Demand is even higher due to fiscal stimulus. Not even worth discussing, its obvious to anybody that has been following the data closely. Look at retail sales figures on FRED and explain to me how this is not a primarily demand driven inflation: https://fred.stlouisfed.org/series/RSXFS https://fred.stlouisfed.org/series/RSXFS You and many others are conflating "shortage" with "supply side issues". Shortages can be driven by excess demand just the same as constricted supply

Which elements of CPI aren't indirectly tied to the cost of energy?

by baobob 4y ago

Which elements of CPI aren't indirectly tied to the cost of energy?

Rent, which is rising close to the fastest pace on record for the CPI. But depends how many leaps you want to take to justify its relation to energy Nothing in the breakout of the CPI data shows slowing in pretty much any category

JumpCrisscross 4y ago
> Rent, which is rising close to the fastest pace on record for the CPI I’m renovating a home. Shipping is higher, due to labor conditions as well as fuel costs. If I rent it out a few times a year, as I’m considering, I will price to make that back. I’m sure those with purely rental properties are similarly inclined.
- adam_arthur 4y ago
  Yes, the economy is interconnected. I also decided to increase rent on my rentals cause the price of bread doubled and my daily sandwich got more expensive
- qwerpy 4y ago
  I never consider my own costs when choosing how to price a rental. I will always charge market rates. If market rates are higher than my costs, great. I won't lower my rates, I'll just pocket the extra money. Similarly if market rates are lower than my costs, I can't just stubbornly keep the rates high. No one will rent from me. If that goes on for a long time I'll decide it's a non-performing asset and sell it.
  - JumpCrisscross 4y ago
    I called myself out as a marginal source of supply. I love my renovations. I don’t need the cash. If a lease can’t cover my costs, altogether, I would prefer to not rent and not risk the damage. Input costs eventually filter to the outputs.
MrRiddle 4y ago
Housing was/is directly affected by Covid supply shortage. Cars, chips, energy, supply shocks etc are what’s causing all this increase in CPI. I would even say there’s not much (monetary) inflation, on the contrary, deflation of the USD might break the system.
- adam_arthur 4y ago
  Just repeating disproven mantras from a year ago. Chip supply is higher than prepandemic. Demand is even higher due to fiscal stimulus. Not even worth discussing, its obvious to anybody that has been following the data closely. Look at retail sales figures on FRED and explain to me how this is not a primarily demand driven inflation: https://fred.stlouisfed.org/series/RSXFS https://fred.stlouisfed.org/series/RSXFS You and many others are conflating "shortage" with "supply side issues". Shortages can be driven by excess demand just the same as constricted supply