View Full Version : If inflation is cooling why are prices going up?
Prices on just about everything we buy continue to escalate whether its consumer goods, food or services. Yet even after today's rate hike, we are told that inflation is finally cooling. I read that consumers especially those who can afford it just shrug and pay the price so corporations continue to raise prices or hold at high prices. More often than not, I tell DH we will have to make our own. $7 for a bag of organic corn tortilla chips? $8 for a decent loaf of bread? Nope...high prices sure are making our little household more resourceful.
Its doublespeak. Supposedly the rate of increase is slowing so it's going up 8% not 10% - still going up and still crazy inflationary.
Teacher Terry
5-3-23, 5:29pm
I am on my condo board and our vendors are really jacking up our prices. Some weren’t giving good service as it was so raising prices was the final straw. Our crappy pool company was doubling our bid to have our pool open for 110 days. We said no and got more bids. Finally took one that was 40% lower. Our management company tried to tell us it was just inflation because they didn’t want to look for another vendor. We decided we would keep the pool closed before we would be extorted.
As for my personal budget I have been finding cheaper options even though it’s taken a good chunk of time. When my groomer raised their prices 4xs in 18 months I left. Their business used to be busy and now it’s not. People have a breaking point.
I've basically stopped buying things, because the prices are so absurd I feel like I'm being ripped off, and I can generally come up with another alternative.
Probably healthier for me too, the diet soda I buy, which was *already* overpriced since the pandemic began, went up 35% here last week. Nope.
My HOA just paved our road system ~4 years ago. We were doing some reserve planning last week, and noticed we'd only included the traditional regional inflation metric in our calculations, so we got some back-of-the-envelope bids so we could correct the model. Paving projects have skyrocketed. In order to deal with that, we are going to scale back on some of the semi-critical services we provide to the residents.
I shop more often to high grade grocery sales and stockpile sale items. I really can’t tell if things are still going up or if they are at the same expensive prices as a couple of months ago. I could find work arounds for chips and breads but have my own issues. At least there’s starting to be some fresh seasonal produce coming in with reasonable prices.
flowerseverywhere
5-10-23, 2:52pm
Quaker oats have almost doubled here. I happened to see a display of Lorna Doone cookies and they were 6.29. Apples are 2.99/ lb.
I shop sales. We almost never eat beef. I make almost everything from scratch. Produce from farmers market is our go to.
For other items I shop thrift stores and yard sales.
Luckily my passion, quilting and sewing, is mostly supplied by discards and donations from others because they know I sew a lot for charity, or sell items and donate the money to local charities that support vets and children.
I have enough not to care, however with three grandchildren approaching university age, I would like to be able to help them. Wasting money is just not in my genes.
It makes no sense.to me that prices on some these items have skyrocketed.
My neighbor just had her job review (she works for a large Vermont company with a national reach), and the raise was the same for everyone company-wide--2.5%. Lower than the CMS cost-of-living increase. How do you navigate the waters of inflation when you are basically going backwards with your paycheck?
In my company it was 3.5% for everyone. They really do want us to "own nothing and be happy". The first will happen if we stay on the current trajectory, the second will not.
I got a $10K raise last year. Not expecting anything this year.
I get my hair trimmed about twice a year. Just a dry cut that takes about five minutes. It has always been between $15 and $18 but on my last visit, it was $30.
My guess is corporate greed.
I get my hair trimmed about twice a year. Just a dry cut that takes about five minutes. It has always been between $15 and $18 but on my last visit, it was $30.
Well, energy costs have gone up so the shop is paying more for utilities. I’m sure their supplies have gone up. And labor costs have gone up, too.
I love how “corporate greed” is the knee jerk answer whenever someone mentions costs for something have gone up.
One of my customers was griping earlier this week about how much delivery costs have gone up. She didn’t want to hear about how fuel costs have gone up.
I love how “corporate greed” is the knee jerk answer whenever someone mentions costs for something have gone up.
You'd think "greed" would show up in the quarterly reports, in terms of earnings/share or something.
I wonder which corporations are the "greediest", and how their profitability compares to the "less-greedy"?
You'd think "greed" would show up in the quarterly reports, in terms of earnings/share or something.
I wonder which corporations are the "greediest", and how their profitability compares to the "less-greedy"?
I wonder if “business greed” might be a better description as lots of business are small.
The company I bought my diving rebreather from last year raised prices about $500-$600 per unit a couple of months after I had ordered mine and paid in full (so I didn’t get hit with an increase). They said after two years of the Covid situation and increased costs, it had gotten to a point where they’d couldn’t absorb costs anymore and had to raise prices.
When government pumps trillions of new spending into the economy and the diluted money supply contributes to higher prices, people in government will always look for someone else to blame. People like Elizabeth Warren find it almost irresistibly convenient to come up with a “greedflation” story.
gimmethesimplelife
5-13-23, 5:29pm
I get my hair trimmed about twice a year. Just a dry cut that takes about five minutes. It has always been between $15 and $18 but on my last visit, it was $30.I'm going bald these days personally to save money and hassle. Rob
Government spending is out of control. All the "temporary" covid contact tracers are being funded for another year even though the state of emergency is over and no one is contact tracing. Their job now is to push bivalent boosters though only 17% of the population wants them. My midsize city has a dozen of them, their supervisor, and their epidemiologist, on top of nine other health department employees. Health is the biggest expenditure increase in the state budget, and we're not getting anything useful like single payer or more primary care physicians for it. It goes to pushing shots for big pharma which has the money to do their own promotions.
Your state may and hopefully does vary.
My own personal index for price increases is the couscous at Aldi. It used to be 99 cents back in 2020. The equivalent at thr regular grocery store was $2.99. It’s up to about $2.30 now at Aldi. No clue what it is at the regular grocery store now.
Government spending is out of control.
I’m very impressed by the President’s chutzpah when he brags about reducing the deficit by $1.7 trillion by virtue of not being able to pass his original “Build Back Better” bill.
I used to get Kind Bars $5 for 4 on sale and now it's three for five. That's sort of the story of my supermarket shopping, it's all about 30% more compared to pre-inflation.. Fake butter used to be about 5 dollars and now it's 7. I don't buy it, but the red meat counter seems to have some pretty good sales. Coffee is up probably 30% Our local news said that grocery prices are stabilized or coming down. I can't say I've seen any bog increases lately, it's just more expensive. Gas has come down to $3.20 most places. I have enough savings in money markets that I'm thinking it's time to shop for better interest rates. A guess could be that they are about as good as it's going to get.
I can't say I've noticed any sales on red meat, but as I'm at the mercy of grocery delivery, I don't expect much. Bacon and butter seem to have increased in price, as has heavy cream. Prices seem to have stabilized here. Pastured eggs go for about $6 a dozen.
Our local Chamber of Commerce just sent out its invoice for yearly commercial membership fees.
They *doubled* it!
My state has just informed my county that it should raise all property taxes by 43%.
Our property tax appraisal went up 43%.
I wonder what local authorities will do with the windfalls of tax income. Property tax increases have been big in the local news here, but nothing about spending the new money.
Mobile homes are looking better all the time...
Mobile homes are looking better all the time...
Except many mobile home parks are being bought up by investors. Thus no control over rising lot fees unless you can find a community owned park.
Except many mobile home parks are being bought up by investors. Thus no control over rising lot fees unless you can find a community owned park.
Unfortunately. There's a nice one nearby where you own the lot your home sits on.
Mobile homes are looking better all the time...
The NIMBYs and environmentalists have been very very successful the past 30 years here at making any sort of mobile home park illegal to develop.
They also whine and complain about the terribly high cost of housing here, and their difficulty in finding tradespeople.
I'm sure these two issues are not connected....
The NIMBYs and environmentalists have been very very successful the past 30 years here at making any sort of mobile home park illegal to develop.
They also whine and complain about the terribly high cost of housing here, and their difficulty in finding tradespeople.
I'm sure these two issues are not connected....
I've wondered why there aren't more manufactured home neighborhoods being built; it seems they would provide an alternative to condos for many of us.
I've wondered why there aren't more manufactured home neighborhoods being built; it seems they would provide an alternative to condos for many of us.
I built a neighborhood of affordable homes for our community land trust a few years back. We used factory-built homes and brought them over the ocean and installed them. They were built to UBC standards, fully engineered, and likely of higher quality than on-site-built homes. Still, we got a lot of pushback from the county who didn't at the time understand the difference between an RV and a modular home built in a factory and installed.
It was a huge time and money saver to do the project this way - the homes arrived on the very day promised in the contract, they bolted right onto the foundations we had prepared, and the buyers didn't have to float construction loans for nearly that long.
And there's no reason for factory-built houses to be box-like, either. A little imagination would go a long way in creating pleasing neighborhoods.
happystuff
5-21-23, 4:21pm
I lived in a double-wide mobile home on a private lot back in the early '80s and loved it! I'm actually talking it up to my dh for when we both retired and downsize. Actually need to start looking and planning in more details for that downsize.
I was taken aback by the cost of a large 12 count package of dial soap bars. Last time i stocked up, I paid over $5. Last week at Walmart the cost was over $9.
On the other hand, I was able to buy a dozen eggs for $1.20
Mobile homes are looking better all the time...
I owned a mobile home in a nice adults only lakeside mobile home park with marina when I was first married in the 70s. .It was great. I remember the monthly payment of the nice three bedroom mobile home was $180 and the monthly park rent was $50.
Today, I live in my paid off house in a nice suburban neighborhood that is within a 3 mile radius of everything I could possibly need. The house is too big for me now... but I can live more frugally here than anywhere.
There was an article in WSJ about the middle section of the grocery and pricing. Even though some produce, dairy and meat has gone down or stabilized, the processed corporate foods intend to maintain their profits by keeping prices high or even raising them. We used to buy an occasional bag of tortilla chips or crackers, but at $4-5 a pop, no thanks!
Real estate prices continue to be crazy too. I am now thinking maybe Maine is a better place to move to. Here is a house, not out in the boonies, for $185,000:
https://www.realtor.com/realestateandhomes-detail/38-Linwood-Ave_Augusta_ME_04330_M35417-60140?from=srp-list-card
iris lilies
7-13-23, 12:26pm
Real estate prices continue to be crazy too. I am now thinking maybe Maine is a better place to move to. Here is a house, not out in the boonies, for $185,000:
https://www.realtor.com/realestateandhomes-detail/38-Linwood-Ave_Augusta_ME_04330_M35417-60140?from=srp-list-card
that is a perfectly nice house in good shape. Do you want that much land though?
iris lilies
7-13-23, 12:27pm
Real estate prices continue to be crazy too. I am now thinking maybe Maine is a better place to move to. Here is a house, not out in the boonies, for $185,000:
https://www.realtor.com/realestateandhomes-detail/38-Linwood-Ave_Augusta_ME_04330_M35417-60140?from=srp-list-card
I heard through Reddit gossip that prices in Portland dropped precipitously in the past year. I don’t know if that’s true. I would like to have somebody verify that.
mschrisgo2
7-14-23, 1:06am
that is a perfectly nice house in good shape. Do you want that much land though?
Creek runs through half of the property…
rosarugosa
7-14-23, 6:04am
That's a cute house, Jeppy. It's even smaller than mine, but it looks like a decent layout, so it might actually feel larger.
I looked at a house with my sister recently. It's kind of crazy. The house was very cute and well maintained on a nice lot on a good street. Small is OK, right? But there is actually no living room, and you need to go outside to access the cellar, which is something I've never even encountered before. When you come in the front door, you are looking at the wall mounted TV, and a couch to the right, with a little hobbit set-up under the stairway to the left. So you basically have a foyer and a kitchen on the first floor, all for the low, low price of $475,000! The upstairs had two small bedrooms and a bathroom and was pretty normal although small.
https://www.realtor.com/realestateandhomes-detail/21-Clark-St_Saugus_MA_01906_M34472-43714?from=srp-list-card
iris lilies
7-14-23, 10:47am
In my old neighborhood of Victorian houses the cellar was accessed from outside. Modern renovations cut a hole in the floor to create interior staircases to the basement. Most everyone I know had both interior and exterior entrances to their basements.
iris lilies
7-14-23, 10:50am
That's a cute house, Jeppy. It's even smaller than mine, but it looks like a decent layout, so it might actually feel larger.
I looked at a house with my sister recently. It's kind of crazy. The house was very cute and well maintained on a nice lot on a good street. Small is OK, right? But there is actually no living room, and you need to go outside to access the cellar, which is something I've never even encountered before. When you come in the front door, you are looking at the wall mounted TV, and a couch to the right, with a little hobbit set-up under the stairway to the left. So you basically have a foyer and a kitchen on the first floor, all for the low, low price of $475,000! The upstairs had two small bedrooms and a bathroom and was pretty normal although small.
https://www.realtor.com/realestateandhomes-detail/21-Clark-St_Saugus_MA_01906_M34472-43714?from=srp-list-card
That is a lot of kitchen space taking up 800 sq. Ft.
Teacher Terry
7-14-23, 12:07pm
Yppej, that’s a cute little house. Rosa, I have seen houses where you go outside to get to the basement in Wisconsin but it’s weird not having a living room. One of the condos in our building was 944 sq ft and beautifully redone. However, the kitchen is now huge and the dining room is gone. It looks weird and the living room also shrunk because of it.
I wouldn't be able to move to Maine until I retire since it is too far to commute. But I found a great town:
https://www.wmtw.com/article/maine-town-approves-anti-mask-resolution/35617735?fbclid=IwAR2WSCv66tzbAJEQAX70Z2lgM5yhk4bH P0qjWHHzgfitrLeag1qsRE08OTI
It looks a lot bigger than its actual size. Very nice--plenty of windows, plenty of property for privacy.
rosarugosa
7-14-23, 3:06pm
Jeppy: If you move there, be sure to check out McLaughlin Gardens in South Paris. It's a lovely place:
https://www.realtor.com/realestateandhomes-detail/21-Clark-St_Saugus_MA_01906_M34472-43714?from=srp-list-card
Jeppy: If you move there, be sure to check out McLaughlin Gardens in South Paris. It's a lovely place:
https://www.realtor.com/realestateandhomes-detail/21-Clark-St_Saugus_MA_01906_M34472-43714?from=srp-list-card
Your link is for a house not gardens.
gimmethesimplelife
7-15-23, 1:46pm
I echo bae above.....we here at Casa Rob have stopped buying most things. I will still shop at yard sales (found some incredible inflation busting deals this Spring when I had a day off) and also we will continue to shop the Goodwill Sold By Weight Clearance Center in Nogales, AZ - the prices are so low there we make up the cost of getting there and back. Other than that, we just choose not to participate in any spending we don't absolutely have to.
At this rate, I believe my take on the necessity of leaving the US to be able to retire in the first place is going to go mainstream or at least not be viewed the slightest bit as radical going forward - it's just too damned expensive in the United States. At least I have a few workarounds to date. I have something like 12 pairs of shoes I bought for $2 each pair the last time I was in Nogales at this Goodwill. That's enough shoes - the point is that I stocked up to not be vulnerable to retail prices.
I don't know the answer here but I am becomming more and more grateful for the economic turmoil I've known in my life. I can auto adjust my standards downward instantly - faster than one can snap their fingers - because I never really believed in the US as a viable long term option. I do feel a little bad for the many folks who are not capable of this automatic adjustment - I see challenging days ahead for many.
It seems SO and I will be travelling next Summer - Bogota/Medellin and not just for tourism but to get a handle if Colombia would make do for lower costs as a place to retire. Anyone in any position to do so - I highly recommend such comparison shopping. I can't see things getting less expensive nor wages increasing very much from here on out. Rob
gimmethesimplelife
7-15-23, 1:47pm
And for those completely unwilling to leave the US - Bless you, someone has to stay - I recommend Wichita, Kansas - a place where 135K can buy you a decent house to this day, with a large backyard to grow some of your own food. Rob
frugal-one
7-15-23, 3:56pm
I echo bae above.....we here at Casa Rob have stopped buying most things. I will still shop at yard sales (found some incredible inflation busting deals this Spring when I had a day off) and also we will continue to shop the Goodwill Sold By Weight Clearance Center in Nogales, AZ - the prices are so low there we make up the cost of getting there and back. Other than that, we just choose not to participate in any spending we don't absolutely have to.
At this rate, I believe my take on the necessity of leaving the US to be able to retire in the first place is going to go mainstream or at least not be viewed the slightest bit as radical going forward - it's just too damned expensive in the United States. At least I have a few workarounds to date. I have something like 12 pairs of shoes I bought for $2 each pair the last time I was in Nogales at this Goodwill. That's enough shoes - the point is that I stocked up to not be vulnerable to retail prices.
I don't know the answer here but I am becomming more and more grateful for the economic turmoil I've known in my life. I can auto adjust my standards downward instantly - faster than one can snap their fingers - because I never really believed in the US as a viable long term option. I do feel a little bad for the many folks who are not capable of this automatic adjustment - I see challenging days ahead for many.
It seems SO and I will be travelling next Summer - Bogota/Medellin and not just for tourism but to get a handle if Colombia would make do for lower costs as a place to retire. Anyone in any position to do so - I highly recommend such comparison shopping. I can't see things getting less expensive nor wages increasing very much from here on out. Rob
I have traveled extensively and can honestly say there are few places that compare to the US. The standard of living in South America and elsewhere is very low. There is more to living than how little you can get by on to live. I would hate to have to retire with that mindset.
gimmethesimplelife
7-15-23, 4:12pm
I have traveled extensively and can honestly say there are few places that compare to the US. The standard of living in South America and elsewhere is very low. There is more to living than how little you can get by on to live. I would hate to have to retire with that mindset.I agree with you that this is an unfortunate mindset to have concerning retiring. That said, how many Americans realistically will have a sufficient asset base as to think in these lofty terms you describe? Some will, yes, I don't deny that - but the vast majority? Leave the US on a retirement visa to a lower cost country - or work until death or at least much longer than you would have to if you departed the US.
In this scenario, how many will stick around in the US? It will be interesting to see to be honest as this reality is playing out now as we speak and given the givens, I can't see it not intensifying going forward. Rob
frugal-one
7-15-23, 6:43pm
I agree with you that this is an unfortunate mindset to have concerning retiring. That said, how many Americans realistically will have a sufficient asset base as to think in these lofty terms you describe? Some will, yes, I don't deny that - but the vast majority? Leave the US on a retirement visa to a lower cost country - or work until death or at least much longer than you would have to if you departed the US.
In this scenario, how many will stick around in the US? It will be interesting to see to be honest as this reality is playing out now as we speak and given the givens, I can't see it not intensifying going forward. Rob
In hearing about your frugal ways, I doubt you need as much for retirement as you envision. Before I retired I contacted a fee-based financial planner to see if I was realistic about retiring. Have you done this? You might be surprised how little you need. Might be a good idea to check before you turn your entire world upside down??
Rob, I think your estimate of people who will retire outside the US is very inflated. First question is will the country in question let them in? It seems that a lot of people are clueless about the entry requirements other countries have. I know a number of people who would love to move to Canada. They’re younger, still working. They don’t meet the requirements.
iris lilies
7-15-23, 9:22pm
I agree with you that this is an unfortunate mindset to have concerning retiring. That said, how many Americans realistically will have a sufficient asset base as to think in these lofty terms you describe? Some will, yes, I don't deny that - but the vast majority? Leave the US on a retirement visa to a lower cost country - or work until death or at least much longer than you would have to if you departed the US.
In this scenario, how many will stick around in the US? It will be interesting to see to be honest as this reality is playing out now as we speak and given the givens, I can't see it not intensifying going forward. Rob
What is a retirement visa?
Real estate prices continue to be crazy too. I am now thinking maybe Maine is a better place to move to. Here is a house, not out in the boonies, for $185,000:
https://www.realtor.com/realestateandhomes-detail/38-Linwood-Ave_Augusta_ME_04330_M35417-60140?from=srp-list-card
I agree that the house, despite having small square footage, is actually quite nice. Like iris Liy I would worry about the amount of yard to care for. Personally that would probably be a deal breaker unless I could replace all that turf with something more low maintenance.
Teacher Terry
7-15-23, 11:27pm
And for those completely unwilling to leave the US - Bless you, someone has to stay - I recommend Wichita, Kansas - a place where 135K can buy you a decent house to this day, with a large backyard to grow some of your own food. Rob
Rob, I have lived in Wichita twice. Yes a nice house is cheap. Despite Wichita being the biggest city in Kansas it’s conservative and if I had trouble finding my tribe it would be harder for you. Plus the weather and scenery is awful.
I have to admit the COL is bad where I live but being close to my kids and long time friends is priceless as is the weather and beauty. I would have more money in Wichita but it wouldn’t make up for my losses. Once a spouse dies moving overseas could be very difficult.
rosarugosa
7-16-23, 6:03am
Your link is for a house not gardens.
Sorry, this is the correct link:
https://mclaughlingarden.org/
Iris lilies, here is info on retirement visas. Keep in mind that it can change on a whim based on whether the country wants retirees and those in the country can pretty much be kicked out if the politics or instability increases. Better website: https://wherecani.live/explore-options/retirement-visas/
Teacher Terry
7-17-23, 12:01pm
The other downside about retiring to a cheaper country is that frequently a stable country becomes unstable and unsafe and then you have to get out. Not a fun way to spend your life. I don’t know one person that has retired in another country.
catherine
7-17-23, 12:07pm
The other downside about retiring to a cheaper country is that frequently a stable country becomes unstable and unsafe and then you have to get out. Not a fun way to spend your life. I don’t know one person that has retired in another country.
I know two who retired to Mexico. Both old friends. Interestingly both had long careers in university administration. One is single and retired to Guadalajara and the other retired with his husband to Ensenada, and both are very happy.
I am in the midst of getting a UK visa, but I don’t know that it is necessarily “cheap” to live there.
.
Maybe government fudges the official inflation numbers.
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