Forget the official stats. Inflation is raging in the family budget
According to government statistics, the rate of inflation is coming down. You can either believe that or believe what you see happening to your family expenses.
First and foremost, we should remember that a reduction in the RATE of inflation is NOT a reduction in prices. They are still going up … up … and up. Just not at the super high rate of the past. And all whose increased prices from past inflation are the floor for the new price increases. In other words, the impact of the past high inflation is still baked into the prices you pay at the store. In other words, a 3 percent increase today is a greater dollar increase than a 3 percent increase four years ago, when the base price was much lower.
It would be bad news even if the government figures were accurate in terms of the family budget. However, anyone who pays the family bills or does the shopping knows that the family’s increased costs significantly exceeded the government’s announced inflation rate – often more than double in some cases.
Just as an example, I went to buy some avocados. The price was 70 percent over last year’s price. Same with eggs. In fact, it was almost impossible to find any item that only rose at the government-announced inflation rate. While President Biden talks about 7 percent inflation at the high point, economists know that food prices for the average family rose more than 20 percent.
The next shock to the public – especially those on Medicare with private advantage programs – will be in the form of copays. United Healthcare is raising the copays on medical services (not drugs) across the board – often as much as 70 percent. In addition, they reduced the quarterly over-the-counter benefit from $40 dollars to $25, dropped the rewards programs and ended Golden Sneakers gym memberships.
For those on Social Security, at least there is the so-called Cost of Living Adjustment (COLA). It is a misnomer. Never does the cost of living adjustment match the actual increase in the real cost of living.
While they say inflation is dropping below 3 percent, the family budget is still experiencing price increases in excess of the official government statistics. It looks good on paper, since the COLA increase is about 2 percent for 2025, and the official inflation rate is 2.5 percent. Unfortunately, the family budget will be hit with cost increases in 2025 in the neighborhood of 6 percent.
This year – because of the government’s version of reduced inflation – the increase in the average monthly Social Security – the COLA — will be a whopping $48. Not even enough to take a kid to a baseball game.
Fans of Social Security say that the COLA is destined to prevent retirees from losing purchasing power in the face of inflation. In reality, retirees lose purchasing power every year despite COLA increases because they do not match the actual cost increases.
Millions of Americans rely on Social Security as an important part of their financial security. However, that does not make Social Security a good investment. In fact, it is a terrible investment. In terms of purchasing power, it has a negative return on investment. The money you get from Social Security is worth less than the money people put in. In other words, it is a losing investment.
Those who are currently struggling to stay afloat will continue to struggle to stay afloat – maybe more so as their credit cards get max-ed out. That is another looming economic disaster rolling through the country without much attention being paid by the supposedly smart folks in Washington.
So, there ‘tis.
We can all thank Dear Leader Trump for his $8 trillion increase in the money supply for this inflation. Had he actually won in 2020 we would be blaming the correct person for it, but as it happens, inflation shows up 18 to 24 months after the money supply increase, right in the middle of the Biden administration. So the morons blame Biden, because they do not know any better.
Thank you, Trump.
What will you do to us if you win this time?
20%+ inflation with tariffs?
Destruction of the economy by deporting millions of illegal migrants, people taking jobs Americans don’t want?
Government control over our bodies?
What about the millions and billions and even in the trillions that Ahole Biden with Mr. kamala sending overseas to other countries and NOT helping Americans? What have you to say about that, Andrew. Are you a Patriot or are you a Traitor?
Andrew Gutterman … I see you have joined the Mike f school of economic ignorance. Your political bias trumps your level of political knowledge. We are living in the throes of the Biden inflation caused by his excessive spending on top of covid excessive spending. Instead of tamping down the embers of inflation, Biden poured gas on them. He owns it and most people understand that. That is why up to two-thirds of Americans trust rump with handling the economy.
Larry-You are really struggling, your incoherent thoughts on SS at the conclusion of your tome are proof of that. Anyone with the least bit of economic knowledge understands that SS is not an investment, it is a pension plan so that the people who have saved little during their working years (you for example) have something to buy groceries with. Yes, the dollars are worth less than what you put in-however, if you live long enough-you will get far more dollars back than you put in. It is a ‘safety net’, nothing more, but I realize that people of your ilk don’t believe in safety nets. As for inflation-you live in the state with about the highest inflation rate in the country. I am not paying more for eggs or avocados this year than last. And I certainly wouldn’t trust you to be able to predict what the inflation rate will be for 2025, you’re too ignorant for that and certainly don’t have the knowledge skills required. With interest rates going down, I believe that most people (perhaps not retirees) will find a much better economic situation next year than today.
Mike F, a month ago we were paying $5.00 for a carton of eggs. Two weeks ago, it was $6.00 and yesterday it was $8.00. I have the receipts on that. What kind of ilk is Larry, exactly? How would you know what he thinks? Are you inside his brain? Maybe you are cheating on all finances, who knows. I believe we all would love to have you answer my questions. Then read the post I gave to Andrew about Kamala, Biden & friends about them sending million, billions into the trillions to other countries but NOT helping Americans, even now after the aftermath of hurricane Helene. Can you make a plausible sense of that with you incredible absolutely correct mind (cough cough)?
That’s a big fat lie. I have chickens, and have been selling eggs to coworkers for a few years. My price has been $5 per dozen (free range, organic) for the last 3 years. In the past year and a half, I can barely give them away. Why? Because the local grocery is charging $2.50 for an 18-pack of brown eggs. There aren’t any industrial chicken farms in the Northeast… they’re coming out of the Midwest, 1000 miles away. How they make any money on them, I don’t know, but they aren’t selling them at $5 or $6 per dozen. They were up for a while last year, because of a bird flu that killed a bunch of big flocks, but egg prices are back down where they were two years ago. Besides the fact that Biden has absolutely nothing to do with the price of eggs, Walmart occasionally runs specials at $1 or $2 a carton.
Buy about 4 chickens at $2 each, and in 6 months you’ll have all the fucking eggs you can eat. With feed, it will work out to $2.50 to $3 a dozen, and you’ll learn to appreciate all the work farmers do to grow your food.
And who says Biden is not helping victims of the hurricane? Felon Trump played those games, but President Biden never has. He’s already toured the (red) states that were affected, and mobilized FEMA to help.
Press release from FEMA:
WASHINGTON — As search and rescue, power restoration and communication capabilities remain top priorities throughout the Southeast, FEMA has already helped thousands of Hurricane Helene survivors jumpstart their recoveries with more than $20 million in flexible, upfront funding.
More than 5,000 personnel from across the federal workforce are deployed, including more than 1,500 from FEMA. To date, FEMA has shipped over 9.3 million meals, more than 11.2 million liters of water, 150 generators and more than 260,000 tarps to the region.
President Biden has approved a Major Disaster declaration for eight counties in Tennessee. This declaration comes in addition to areas in Georgia, Florida, North Carolina, South Carolina and Virginia. Yesterday, the President announced an increase in federal cost share for each state to help state, tribal and local governments and non-profit organizations cover the cost of recovery.
Last I looked, all of those affected states are RED states. A REAL President doesn’t think about “what has that governor done for me?” or “did voters there support me in the last election?”. Only Felon Trump makes those calculations.
Joseph S Bruder … Do you really think your anecdotal experience in the wilderness represents pricing at all levels and in all places. Geez! That is below even your intellectual level. And then you base your knowledge of disaster relief on a FEMA press release. LMAO You completely disregard the experience and opinions of those on the ground suffering. FEMA hands out $700 to people who have lost homes, businesses and family members. The White house has yet to put in an emergency funding request to Congress. FEMA is short of money because the shifted $1.4 billion too to illegal alien welfare. And you use the FEMA publics relations releases as gospel. That shows you for what you are … a parrot of left wing narratives and propaganda. A repetitious recording on eternal loop. I am afraid that your most meaningful association to eggs is wiping them off your face.
My anecdotal evidence against “Crazy AF’s”? I live on a farm, but it isn’t wilderness. I do my shopping close to work, in a metro area of several hundred thousand people. Because I sell eggs, I keep a pretty close watch on prices. Market Basket, a grocery chain that has stores all over NH and MA, is advertising an 18 egg carton for $2.49. You can look that up if you’d like. “Crazy AF” probably picked up some artisanal free range organic extra jumbo eggs, and is using that as his justification. Or he’s lying to make a point (the Republican motto, “the ends justify the means”?). Eggs went up across the country last summer because of an avian flu that wiped out hundreds of thousands of birds, but stocks have recovered. General inflation had nothing to do with that. And in fact, inflation has gone below the 2% target. Gas prices are coming down. Beef prices are lower (which doesn’t help me sell beef either, although people WILL pay a premium for grass-fed local beef) Elect Felon Trump, and his “unfree trade” 20% tax on the poor tariffs will raise prices on everything, and we’ll be hunting in grocery stores for toilet paper again.
Nobody took $1.4 billion out of FEMA’s budget to give to illegal alien welfare. That’s a big fat lie spread by My anecdotal experiance against Republicans. There is a FEMA program called the Shelter and Services Program that was funded by Congress and is completely separate from other FEMA programs. Money from that program can’t be used for other programs, and vice versa.
FEMA gets people into hotels, then gives them $750 in emergency spending money. Immediately. They have to fill out forms to get more than that. It takes time to clean up and rebuild, and Congress has a little bit of time to get it (maybe even until the next Congress.)
Half of Congress refuses to believe that global warming exists, despite all the evidence. Warmer oceans mean more natural disasters, especially from hurricanes, tornados, and wildfires. They didn’t budget enough. There was $20B in funding for FEMA, and Congressional Republicans killed a $10B supplement for FEMA last month. Since it’s all red states that usually get hit with hurricanes, maybe Republicans will (for a change) agreement to increase the spending by FEMA. Democrats propose it, Republican “leader” Mike Johnson decides whether or not to bring it to the floor for a vote.
Joseph S Bruder …You really are a funny guy. Now you are all worked up about the comparative price eggs — using your remote example as the national norm. LMAO And FEMA gives the money only after they situate them in hotels. You’re kidding … right? All those folks complaining about not seeing any one from FEMA are not in hotels. They are sitting outside their damaged homes with no electricity. And even those who get the money — what can then spend it on? May be you can sell them some eggs. LOL And if FEMA did not shift the $1.4 billion to immigration welfare, why does FEMA brag about more than 1500 grants to immigrant issues ON THEIR OWN WEBSITE. Joe, I would never call you a liar just because you are a gullible absorber and parrot of left wing narratives. That does not make you a liar … just not very intelligent. Face the facts, JSB … FEMA has failed to meet the challenge in this one … period. And all their bs press releases they issue for fool folks like you like do not change that fact. I saw the head of FEMA on Morning Joe today — and when she was asked is those affected by the hurricane are getting all they need, she said “absolutely.” If you want to see a real lie — that is it.
I really should not be egging you on….lol Next time check the facts be for you hatch another theory. Maybe you need to come out of your shell — and give up that hardboiled attitude. Stop acting like Chicken Little cuz the yolks on you. You are just getting more egg on your face. (Ooops.. I use that one before … sorry) LMAO Thanks for the laugh of the day, old bro.
Felon Joseph, my words are NOT a big fat lie. It is the 100 % truth and I resent your disgusting retaliation. For you to call me a liar is very troubling. How would you even know, Mr. Knowitall! It is most likely a difference in what State people live in. Just because you say something does not make it reality. You do not know how to properly think! You only know what you see in your own little world. Maybe if you got out of your own way, you would be ahead of the game.
Mike f … if you want to have a serious dialogue on economics and Social Security, don’t resort to such ignorant statements. Of course SS is a form of investment — as are health and life insurance. You put in money in anticipation of a financial benefit. If folks had invested in private investments, the return would have been many times higher than SS. And spare me the nonsense that a regulated private investment would not be safe. At least you admit that the dollars you take out are worth a lot less than the dollars you put in. If you had put all that money in your mattress you would be financially better off. Even if you live long enough to take out more physical dollars than you put in — and that is not difficult — the total value and purchasing power is less in value and purchasing power than the money you put in. Despite your own good fortune, the majority of Americans are worse off today than they were four years ago — according to them. I would be a bit more careful when calling someone ignorant when you manifest economic stupidity on a grand scale. Your prediction of a better 2025 — except for millions of retirees — will only come to pass if Trump gets elected. And then even the retirees might be better off. Democrat economic polices are unsustainable.
Larry, You continue to amaze me (not really…). For someone who believes he is the reincarnation of Einstein you come up with some of the dumbest statements -but I guess that’s why you continue to support the failed republican economic policy. First off, no SS cannot be considered an investment any more than any other retirement pension is an investment-to say otherwise just shows your extensive stupidity. It is a backup for people like yourself who have been unable to invest their money wisely during their working careers and would otherwise come up short during their golden years. Yes, a truly saavy investor could take the money put aside for SS and do better-but the vast majority of the US population (yourself included) are unable to do that. Totally ignorant comment that you could take your money and stick it under the bed and do better-but what do we expect of someone of your ilk? You believe that if we continue cutting taxes for the well to do, then money will trickle down to the less well off-republicans have been following that policy for 40 years and it has never been successful-less so for the trump cuts than previous. And saying that people will only be well off in 2025 if trump becomes president shows you really have over indulged in the kool aid, as the vast majority of economists say that his plans to impose tariffs will cause inflation to spiral like we haven’t seen in 40 years. But of course, being an ignoramus you can’t figure that out for yourself and instead listen to newsmax praising the orange turd…
Mike f … You amaze me at your persistent ignorance of economics and public policy. And all your childish name calling does not change that fact.
For someone who refers to his Readers as idiots and ignoramuses to complain about any similar comments is really rich. But you’re a Republican, so lies and inconsistency are baked into your brain. I am only persistent in my comments in my desire to potentially educate your readers about some of the bullshit you put out..
Mike f …. One cannot educate if they do not know their subject..
Oh, how did the price of eggs morph into a FEMA conversation? Probably to avert the substance of the real conversation done purposely to save face?
You were the one that brought up the price of eggs… And also “million, billions into the trillions to other countries but NOT helping Americans, even now after the aftermath of hurricane Helene”, which is what FEMA does. You want to criticize the Biden administration, but have no ammunition except the failings of the Republican House majority. It doesn’t work.
It is in US interest to help people in need in other countries. Alliances make us strong, and like it or not, we also depend on trade and political support from other countries as well. We can contribute to Ukraine for a war fought on their turf, or we can let the Russian bear roam around freely in Europe until we have to take a much larger and more expensive military action. If that happens, we will have a military draft, our own people fighting directly against Russia, probably bombs hitting the US and Europe, rationing and high prices of EVERYTHING. Be careful what you wish for.
The author spins when he says: ” The price was 70 percent over last year’s price. Same with eggs.”
Eggs are outside the inflation curve due to the H5N1 strain of avian influenza, or bird flu which has affected nearly 100.8 million birds in the U.S. causing an shortage of eggs pushing up the price.
It’s an apples to bazookas and the author knows it. I wonder what other lies and spin are in this story?
The author includes the price of eggs in his inflation anecdotes. Eggs affected by avian flu killing over 100 million birds. This price is really outside the inflation effect. Demand was up for the period also.
This is the problem when an author focuses on personal experiences over macro or even micro economic statistics.
For example, he has touted his lack of copays for his health plan and now laments over copay increases. My United Healthcare plan prices went down next year. Depends where you live and what United Healthcare plan you are on.
At a macro level, inflation is down. On a micro level, we can expect prices to fall. On a personal level, no one’s spending will match the market basket used to compute inflation. Tis the law of averages that the individual will never be average.
Stranger danger…. You writing has the stench of familiarity — although the name is different. You throw around words like “macro” and “micro” as if you know economics. But you the write in ways that show you are clueless. First of all eggs and avocados were just examples of the macro economic reality.. I could choose 100 items in the store the prices of which have risen more than inflation. I made a distinction between drug co pays and medical services co pays. I have the booklet on the new United Healthcare roll over and virtually all the prices have gone up. You obvious are ignorant of the fact. Pity you have to use the liar insult. I would never call you a lair just because you are pathetically ignorant.
Is calling the author a liar an insult when it’s true?
The authors states to his readers: “Do you really think your anecdotal experience in the wilderness represents pricing at all levels and in all places. Geez! That is below even your intellectual level.”
The author’s evidence is all anecdotes which, I guess, the author likes to operate “below even your intellectual level.”
His “story” of the egg is a yolk.
His avocado anecdote is more of the same and a lie. I wonder how many more lies are in this story but I am too bored to read more. There’s no statistics here, just personal stories of a man who does not shop well.
Here’s the avocado price by year, set the chart to 10 years and see how 2023 is a dramatic price decrease in avocados proving that the author should not grocery shop.
*https://ycharts.com/indicators/us_avocados_price_received*
It’s called microeconomic statistics. Not to say that Florida stores where the author shops are not charging what he says he pays. But I doubt it.
Another story showing the recent price drop: *https://stories.agronometrics.com/mexican-avocado-prices-dropping-in-u-s-market/*
Also, this summer, US inspectors in Mexico were suspended due to violence. Effectively, there was a ban on imports, like a tariff, and prices rose. Because there was still inspected inventory in the fields, smart people stocked up on cheap avocados and rode out the bubble until the prices fell again. And then they fell again.
As the author notes, anecdotes are nice stories, but statistics are economic facts. My avocados are as inexpensive as they ever were, most times, but more seasonal than inflationary.
“I made a distinction between drug co pays and medical services co pays. I have the booklet on the new United Healthcare roll over and virtually all the prices have gone up.”
My United Healthcare does not have medical copays; I think in the past you said the same, that you pay no copays, so what goes on here? Apparently, that was a lie. Obviously, my United Healthcare booklet is for a different plan. I am guessing you are on Medicare Advantage; I have Medigap. Both of us have United Healthcare, I got mine through AARP. I virtually have no copays and my premium went up by a whopping 3.9% or $9 a month for 2025. However, total costs should be reduced for 2025 because they removed the donut hole and drastically lowered the OOP maximum for Part D. Covid took out a lot of risk holding the line on premiums. Funny that with so many people being covid murdered in Florida that your rates did not go down. How’s your home insurance? Got Flordinflation there?
I pray that you are unharmed in the next round of Hurricane coming to a neighborhood near you. Hopefully North of you.
To Joseph s Bruder. What kind of tractor do you have on your farm ? Or plural.