So current data is showing lumber, steel, and various other building supplies are sky high right now. Even foods like chicken, beef, and other foods are showing the same trend. Most on here kept saying that inflation would not hit even with all the so called free money the Gov't was dumping into the market based on past history. I felt otherwise. So my question is this, Is this now considered inflation or just a temporary spike in the prices until supply catches up with demand?
I feel like it's price gouging. At least the commodities like steel and lumber.
Probably both...The actual to date inflation rate is 2.6 percent.
https://www.usinflationcalculator.co...flation-rates/
Prices in certain sectors have spiked.
https://www.usinflationcalculator.co...ars/100021196/
When part of the workforce can make more staying home VS working their tail off at a lumber mill they’ll choose drawing unemployment and getting stimulus money. It’s all about supply/demand. My cabinet builder is 4-6 weeks out on getting poplar to build paint grade cabinets. Every part of the process to build is slow because everyone is lacking material to provide to retailers. Something is going to have to give with the government stimulus and unemployment gimmes.
Inflation is caused by a simple process. Too much money chasing too few goods. Considering how there is a scarcity of goods and the Feds printing money like it's going out of style I'd guess inflation is headed for a serious comeback in the near future.
Things like this happen when the Gov pays people not to work.
don't forget gas is up a dollar a gallon as well. I guess calling it inflation has now become a no no. Typical to call it something else. Bottom line people are paying more for everything, how can that NOT be called inflation?Originally Posted by Dixie-Raven
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It’s kind of a perfect storm right now where just about every variable points towards price increases in a lot of markets.
I read a good bit of economic outlook projections from the fed, hedge fund managers, and investment banking outlets. Granted these are just projections and nobody can predict the future. But a lot of what’s being said points to the supply chain being constrained well into 2022 and the Fed keeping the 0-0.25% borrowing rate throughout this year, at least.
So there’s not a lot of signs pointing towards price decreases anywhere in the immediate future.
I think the majority said inflation would hit due to money printing. Some of us like myself think the inflation is more due to the lack of supply and increase demand. When the world shut down, the supply of everything stopped. But the gov't gave us all money to spend to stimulate an economy and create demand. Demand drastically outweighs supply now.
Sometime in the future, supply will catch up and prices will fall more in line.
Raising taxes will also help with slowing inflation by taking money out of the system.
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Looked at NY strip steaks at Wally World the other day, they were $12.99/lb. Housing prices have jumped considerably around here. The official inflation number is suspect, for example, you may pay more for a new truck, but it has added features, so you get more value for your purchase, and that's not considered inflationary.
Rasing taxes would slow inflation IF the government took the money out of circulation. Instead, the government will spend the money, which will further fuel inflation.
I doubt that production of goods and services will catch up with the money supply in the near future. It will take time...and in the mean time, government will continue to aggravate the process by printing more money.
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Face it. A dollar don't go as far as it did a couple of years ago.
The technical definition I have heard thrown around is that you have to have frequent periods of increase versus a one time temporary spike. I think inflation may be more persistent than the fed thinks because it will be tough to catch up in fixing the supply chain when there are labor shortages and to fix the labor shortage you are going to have to increase wages unless you are able to automate production. I'm not sure anyone knows what the outcome will be for certain but I don't think it is a bad idea to have at least a portion of your investment portfolio positioned in case of higher inflation.
The prices of trucks have spiked to paying over sticker price for the same truck that was selling $10k under sticker price 15 months ago. This current market is the very definition of inflation. We haven’t created much value since January 2020. We’ve been locked away and government mandated not to.
Strange you all must live in a different country in south Dakota my bills have stayed the same yes wood and steel are up but milk bread steak chicken gas are all about the same.
Statistics such as GDP growth and inflation are highly dependent on the comps. Right now everything is being compared to 12 months ago in the midst of a pandemic whereas a better comparison would be to the same month in 2019. It is possible that all the government stimulus is contributing to a certain level of inflation. One alternative was no stimulus and a depression as a result. Stimulus is not an exact science as the last pandemic was over a century ago.
Pretty much the same for me. I'm not building homes or doing a renovation so the price of lumber is sort of irrelevant to my life. I could go out to SML most of the winter days and pick up free pressure treated lumber floating around from a November flood.
Or you live on a different planet?!? Grocery prices have went way up here in Michigan. Especially meat prices, in some cases they have doubled in the last year.
Just saying I am in charge of our house hold budget and it has not changed everything we buy regularly has not increased in cost.ans since I'm not the only one who stayed that I think what is really going on is people are trying to find anything they can to panic about.
govt screws with the numbers and doesn't count daily household items in the inflation rate either. we have had inflation for years due to high volume of money printing. the federal govt. printed 20% of all the money it has EVERY printed, since the USA start printing money, in 2020
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