Great News!

AGnihonAGnihon
in General

Inflation is now at 8.5%, down from 9.1% from a month ago. We could be negative and say it is still too high, but to decrease Inflation by as much as 0.6% in just one month is no small feat! We can't expect to decrease it like 4% in a month, and I don't understand why we expect the government to raise a magic wand and do that. It's not how the economy works. However, what I believe this says is that Inflation has peaked because of aggressive Federal Reserve action. The Chips act and the Inflation reduction act will also help, although I do admit they are more long-term solutions than short term. The releasing of more oil reserves by Biden and other world leaders could also be helping. What does everyone think about this good progress today?

Comments

  • JohnR1972JohnR1972

    I predict this thread will be locked by 6:00 pm today.

  • cde123cde123

    All smoke and mirrors when the price of housing is up 15% nationally, even 30% in some areas, and wage growth has flatlined since the 80's (https://www.epi.org/productivity-pay-gap/)

  • AGnihonAGnihon

    @JohnR1972 What makes you say that?

  • AGnihonAGnihon

    @cde123 Definitely not saying the problem is solved, but progress is progress. You have to start somewhere right? You know we are quite spoiled because in a lot of countries inflation is up as high as 10-60% and we complain with 8.5-9.1% inflation.

  • AGnihonAGnihon

    It is a global problem, not just a US problem.

  • JohnR1972JohnR1972

    These type of threads pop up from time to time and they almost always turn political within the first dozen or so posts. I have very strong feelings on this topic but it is not a topic I choose to engage in on this website. No offense intended but these threads rarely end well on here.

  • CharlieBearCharlieBear Mod

    I agree with @JohnR1972 😅 We have a lot of passionate and intelligent people on here who are very opinionated on non-cuddle topics…and I’ll just leave it at that 😂

  • AGnihonAGnihon

    You guys are probably right, so if it gets heated on here, I will at least not try to add more fuel to the fire.

  • RadiantHugsRadiantHugs Mod
    edited August 2022

    That official number is largely a meaningless metric, lots of items are simply excluded from the calculation of inflation. For example, my lifestyle hasn't changed all that much, but if I look at my annual credit card spending (which is how most of my bills get paid) it's at least 15 percent more than the average from the previous two years. Yeah, part of that was maybe due to less entertainment, dining out, and driving during the peak pandemic months, but I still had to eat, so some of that was compensated for by increased supermarket spending. I believe the increase is largely because of increase in the cost of goods and services I regularly consume.

  • [Deleted User]SoulParaTodos (deleted user)

    We are so spoiled here in United States! Lol. Most countries in this world will do anything to have this information. For example, in Argentina where I am from, the fashion it’s over 110% that’s actually not great but, we normally have 200% to 2000% of inflation in the years were things are not good at all.

    So 9% a year oh my God. That is so nothing

  • achetocuddleachetocuddle

    @JohnR1972 What you said.
    @cde123 What you said.

  • [Deleted User]Btown (deleted user)

    Well, it can be called just about anything. Inflation, deflation, salvation, augmentation,regimentation, filtration, vacation, hydration, regurgitation, migration or train station.
    All I know is things cost a lot more than they did a year ago.

  • AGnihonAGnihon

    @SoulParaTodos exactly my point! We need to get a grip because other countries have it much worse, and this proves it is not Biden's fault, but rather pandemic afflicted supply chains, war in Ukraine, and crazy weather patterns due to climate change.

  • zerocantaloupezerocantaloupe

    I like cuddleflation

  • AGnihonAGnihon

    @zerocantaloupe 🤣

  • [Deleted User]MavReborn (deleted user)

    @zerocantaloupe That made me laugh!!!! I would LOVE if cuddleflation shot way up!!!! :D

  • [Deleted User]Magda_Bren (deleted user)
    edited August 2022

    People complain about the price of gas but buy Starbucks without complaint.

    A Hot White Chocolate Mocha or a Latte averages $44.80 per gallon.

    And we wonder why are middle class is shrinking. Inflation has someone to do with it but also poor decision making and money management skills.

    I doubt a gallon of Starbucks is going to be able to drive you 25mpg to 30mpg

  • Ironman294Ironman294
    edited August 2022

    My average cost of groceries per month cost 200 bucks per month 2017-2020. Last month and for the last year and a half been steadily going up now cost 250 bucks a month.
    Thank God I don’t drive a car otherwise I would be hurting even more. Inflation is still at a 40 year high. I won’t celebrate a little drop in inflation. Though it was announced by President Biden today inflation was zero in July. So I’m not sure where you got this 8.5% number from.

  • [Deleted User]Magda_Bren (deleted user)

    @Ironman294 Biden probably met the inflation increased by 0% in July. I doubt that is true.

  • DaringSprinterDaringSprinter

    Injecting a little data:

    [source]

    US inflation decelerated in July by more than expected, reflecting lower energy prices, which may take some pressure off the Federal Reserve to continue aggressively hiking interest rates.
    —Bloomberg

    [source]

    [source]

  • OhioMikeOhioMike

    @DaringSprinter Really like the graphs. You know I’m a graph person 😊

    Anyways, interesting info. 2008 and 2020 and some other years … just amazing times we lived through. I realize I’m older than most members here and state of economy is juicy stuff right ? When I reflect on my years here on the planet and all the ups and downs it’s interesting to see what peeps think is the most interesting times economically. So many ups and downs right ?

  • OhioMikeOhioMike
    edited August 2022

    And for what’s it’s worth here are gas prices currently in central Ohio ….

  • UCpaaHVg6u0UCpaaHVg6u0
    edited August 2022

    The price of Starbucks won't have anything to do with the price of all goods manufactured with oil. There is a possible silver lining about inflation... It may be useful in driving us towards more efficient practices which may persist even during times of lower fuel prices. For example, getting me into better food preparation habits instead of lazily purchasing expensive and unhealthy prepared meals.

  • AGnihonAGnihon

    @Ironman294 that 8.5% number is the total inflation percentage when compared to this time last year rather then how much it has increased in the last month. Compared to July of last year, inflation is 8.5% higher, but if you compare it to June's numbers compared to last June, a 9.1% increase, total inflation went down.

  • zerocantaloupezerocantaloupe

  • quixotic_lifequixotic_life
    edited August 2022

    @OhioMike ~ WTH??!! 🤯 The cheapest gas over here (that I could find today) was $4.79

    Adding: On the way home I passed a station with "Premium Clear" (whatever that is) listed for $6.50 fricken crazy!

  • DaringSprinterDaringSprinter

    @OhioMike: More graphs, then! (I like 'em, too.)

    [energy.gov]

    [MarketWatch.com]

  • [Deleted User]KYtransplant (deleted user)

    @quixotic_life I'm going to guess premium clear is ethanol free 93 or higher grade. Although I don't know the terminology for that area of the country.

    Most gas grades are blended with a 10% ethanol in with them.

    Ethanol attracts water and it also eats parts. That's why a lot of small engine manufacturers recommend running ethanol free fuel if you can.

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