Prices.... Going Up!!!

[Mystic]

View attachment 2589180

Per the CPI-U report released by US Bureau of Labor Statistics on Friday 10 June 2022:

- Cost of services continued to increase through May 2022
- Costs of fuel and natural gas continued to increase through May 2022
- Cost of food increased (over) 10% during May 2022
- Cost of "light vehicles", used and new, after a 3-month decline, increased during May 2022

Thus, inflation increased to (YoY) 8.6% ... the highest level since 1981.

Conclusion: Inflation is not yet in the mood of peaking.

 

[Mystic]

^^ PS:

CPI-W, which tracks inflation for “all urban wage earners & clerical workers,” and whose third-quarter average is used to adjust the COLAs for Social Security in the following year, increased YoY to 9.3% during May 2022.

Taken together, the YoY increase in CPI-U and CPI-W exact a (further) diminishing effect re: Purchasing Power of a US Dollar:

PURCHASING POWER, US DOLLAR $100, Q1/2000 - Q1/2022

Source: US Bureau Of Labor Statistics, 10 June 2022

THE INCREASING COSTS OF SERVICES

Services include housing costs AND other items, most prominently the ones listed below, each followed by its YoY % change:

• Health insurance: +13.8%
• Airline fares, summer special: +37.8%
• Lodging in hotels and motels, summer special: +22.2%
• Delivery services: +16.4%
• Laundry and dry-cleaning services: +10.1%
• Housing: (1) Rent Of Primary Residence +5.2% ; (2) Owner Equivalent Residential Rent 5.1%

Because ALL HOUSING (i.e., ROPR + OERR) account for 32.4% of TOTAL CPI, the HOUSING measure is in fact holding down overall CPI... but both HOUSING types are steadily climbing Month-over-Month and may come into full bloom as soon as Q3~4 2022.

COST OF NON-DURABLE GOODS

The CPI for nondurable goods is dominated by food, fuels, utilities, and other household supplies.

Due to the volatility of these goods, especially fuel(s), they are excluded from the calculation of Core Inflation.

Nonetheless, the cost of non-durable goods increased by 2.1% during May 2022 and by 14.3% YoY (ie, Q1/2021 to 31 May 2022).

CPI @ NON-DURABLE GOODS, 1986 to 31 MAY 2022

Source: US Bureau Of Labor Statistics, 10 June 2022

 

[Mgysin]

What do you call a person with 2 sheets of plywood in the back of their truck?A fricken wealthy show off!

Lol that's too funny ...... actually no its scary because it's accurate ...

 

[Mystic]

Coincidentally, since yesterday's account of PPL for gasoline in the European Area and the explanation(s) of the excise duty (i.e., tax) portion of TOTAL PPL, this morning Holland (Netherlands), which is already the most costly fuel in the European Area, announced a statewide increase on all gasoline, thus as of the morning of 11 June 2022, the mean cost os ONE LITER of "regular" gasoline is €2.55 ($2.68), which comes to $11.92 per gallon. That's gonna put a crimp in he Dutchies' summer holiday "caravaning" fo' sho'.

@Spitfirejoe @rickb119 @raycarr00 @spicer

 

[rickb119]

$3.36 is the portion OF the total $8.06 that accounts for the excise duty, i.e.:

$3.36 = portion of TOTAL PPL (expressed in USD) that is EXCISE DUTY
+
$4.70 = portion of TOTAL PPL (expressed in USD) that is FUEL COST LESS EXCISE DUTY

$8.06 = TOTAL PPL (expressed in USD)

My confusion is not with basic math, but with the use of PPL (price per liter) when it should be PPG (price per gallon).

In that case, I'm confused. In a previous post, you state that the USD-equivilent PPG (I assume that's Price per Gallon), in France, was $8.06. If the per liter excise duty is $3.36, that comes out to $12.70 per gallon. What am I missing?

 

[Mystic]

My confusion is not with basic math, but with the use of PPL (price per liter) when it should be PPG (price per gallon).

Dang, you're right, those are PPG equivalents I was posting and I oughtta have used PPG, not PPL, in the text. Habit! Well, as the kids say, "my bad" and (genuinely) thanks for pointing it out, will keep this in mind next time.

 

[rickb119]

Habit!

Kinda what I thought.

 

[Mystic]

Kinda what I thought.

Funny thing is that it took ~ seven years for me to become enured to using PPL, not PPG, in work I do over here. It's kind of a weird situation, sitting in France while writing, in English, to Americans about European economic-related topics. Everything goes sorta topsy-turvy.

 

[OBMG74]

Funny thing is that it took ~ seven years for me to become enured to using PPL, not PPG, in work I do over here. It's kind of a weird situation, sitting in France while writing, in English, to Americans about European economic-related topics. Everything goes sorta topsy-turvy.

Have to ask:

Economically speaking only, are you better off in France than if you were back in the U.S.?

 

[Mystic]

Have to ask:

Economically speaking only, are you better off in France than if you were back in the U.S.?

Overall I am as well off here as I was in my last place of residence (Santa Barbara, CA) in the states, but I am better off here re: access to and affordability of medical practitioners, facilities and services. The difference in quality of care and affordability is (in my estimation) dramatic ... to the credit of France.

My NRG costs -- exclusing the cost of fuel (gasoline for three and diesel for one) for my bevy of vehicles, i.e., two Willys jeeps, an old Chrysler and a SAAB Viggen -- are lower here as well. Housing: my house & ground porperty here is ~80% larger than what I sold in SB, the sale proceeds of which I could have used to purchase two, maybe even three, properties like the one I presently inhabit over here. (nb: I am in northern Lorraine department, nowhere near high-priced Paris or South of France)

Food costs were about equal from 2014 to 2020, @ which point goods inflation @ USA started running away and I'd say my monthly food bill here is lower than the same "basket of goods" in the USA ... I know this is the case as I discuss this matter every couple of weeks w/ my brother and sons, ensconced in the vicinity of Chicago~Milwaukee~Madison, as well as friends still in Santa Barbara and environs and in LA Basin.

 

[Mystic]

^^^ PS: But hey, everything -- all of it -- that I've mentioned above could change @ the drop of a pen to an executive order in Paris, yo... a prospect for which I do have rather a remedy, one that would be deemed drastic and unthinkable to most People Living In The West -- USA, EU, etc.

 

[ernieb1536]

^^^ PS: But hey, everything -- all of it -- that I've mentioned above could change @ the drop of a pen to an executive order in Paris, yo?

Where I live in the Midwest are cost of living is well below California , if you can take the winters it’s a great place to live my $225000 home would be over a million in ca and are electric gas and tax rates are 1/2 of ca

 

[ernieb1536]

This just in:
"Common Sense In Short Supply"

As Mark Twain once said ,Common sense is not that common!

 

[45rpmspinner]

PURCHASING POWER, US DOLLAR $100, Q1/2000 - Q1/2022
View attachment 2589849
Source: US Bureau Of Labor Statistics, 10 June 2022

Not unexpected over a 22 year period.
Average is less than 2% per year.

A similar graph covering 1970-1992 would look much worse.

Despite recent cost increases, local/county property taxes continue to dwarf our food and utility bills combined.

 

[8-Tracked]

Same street as before. Burrard st. Vancouver BC. Opposite side in this street located gas stations with again, exact the same - raised - gas prices.
Fuel price in this OPEC country Canada, with the 3rd largest gas and oil deposits within its land borders world wide and even being also the least populated country world wide per square meter, still go another 5 cents up?!

 

[bashman]

One of my former bosses, a mathematician, used to say it would cost about $700,000 to fill your gas tank with printer ink.

 

[rickb119]

local/county property taxes continue to dwarf our food and utility bills combined.

Although I loved my time in Texas ('80-'90), that's the only reason that kept me from going back, when I retired.

 

[raycarr00]

was looking forward to retiring to spain or italy, but with the current world health and economic disaster, will be looking forward to the ever increasing number of hurricanes of the Caribbean, instead. maybe buy a cart n donkey to get me around...with a built in hi-fi system, of course. maybe after a decade or so, e vehicles will become affordable.

 

[8-Tracked]

Canadian confederation has within there land borders alone, over 1200 - yes that's twelve hundred - unused , non active developed ready to pump or fragg, oil and gas 'wells'. Just abandoned or neglected, 'switched off' so to speak, rusting and leaking 24/7 365 days a year. So that's aside the known developed 'fields' that are actually being used exploited as we speak!
Same story in the USA. There we speak over 1100+ (Eleven hundred ) unused gas / oil non depleted developed and ready to re-use 'wells' and fields. Aside thus those who are in 'production. That's only within the USA lower 48 plus Alaska landmass. So not even in the territorial waters or further away in international waters near there coastline or further.
Equal story within the EU land borders and territorial waters and economic zones in the North Sea and Mediterranean Sea, Baltic, Artic and Atlantic; being thus not much different. With over 1400 known, but not being used(anymore undepleted or not even developed, ready to use gas and oil fields wells / fields. Add the known deposits currently in active exploration / production (like drilling pumping fracking etc thus), aside of course - again - the still not discovered deposits / fields in these 2 countries and the EU alone

Enough gas price talk for the day!

 

[ernieb1536]

was looking forward to retiring to spain or italy, but with the current world health and economic disaster, will be looking forward to the ever increasing number of hurricanes of the Caribbean, instead. maybe buy a cart n donkey to get me around...with a built in hi-fi system, of course. maybe after a decade or so, e vehicles will become affordable.

There not ment to be ! So get use to riding the bus !