What is figured in to the inflation rates?

[oilfieldace]

When I hear then on TV they are talking inflation month to nothing. Or at least that is what I think they are saying . All that does is show a monthly trend. What does that tell you? Absolutely nothing when compare todays rate to the cost difference between 1/20/20 to 7/28/23.

When using those dates , you are easily paying 20% more today for super market items, gasoline propane, electricity and the like. We don’t use fuel oil to heat down south. I am not sure how much more our northern neighbors are paying.

It would seem that an economic comparison should be against your predecessor not yourself.

[matchingmole]

Inflation

[Lucas McCain]

https://hbr.org/2022/12/what-causes-inflation

Ace, I thought the above article/link would answer your question a lot nicer than I would if this is actually a genuine inquiry on your part.

Hint: It has jack shit to do with Biden like the misinformed like to claim. Or maybe Biden is also the president in Argentina too. Comprende?

https://www.reuters.com/world/americ...ng-2023-05-12/

[Vulva]

If they had not stole the election from Trump, we would not be in this situation at all. Putin is the last man standing and he is fighting NWO head on. Putin is the man that is going to save the world.

[oilfieldace]

Originally Posted by Lucas McCain

https://hbr.org/2022/12/what-causes-inflation

Ace, I thought the above article/link would answer your question a lot nicer than I would if this is actually a genuine inquiry on your part.

Hint: It has jack shit to do with Biden like the misinformed like to claim. Or maybe Biden is also the president in Argentina too. Comprende?

https://www.reuters.com/world/americ...ng-2023-05-12/

Are you saying that it doesn’t matter what a leaders programs or policies are they have no bearing on the economy? Actually that wasn’t the question, if you would read the subject line. Nothing shady about the straight forward question. The question was other than goods and fuel what goes into the equation.

Supply versus demand has always driven price. If the supply drops and the demand remains the same then the prices go up. My thinking is their are lots of factors that contribute t supply , one is the programs and policies of leadership.

As for as Argentina goes that is a direct result of government. Not at all a good example of shit happens.

Yes it was a sincere question. Not all of us farm boys are rubes.

[oilfieldace]

Originally Posted by matchingmole

Inflation

Well thought out answer valued poster

[Tiny]

Originally Posted by Lucas McCain

https://hbr.org/2022/12/what-causes-inflation

Ace, I thought the above article/link would answer your question a lot nicer than I would if this is actually a genuine inquiry on your part.

Hint: It has jack shit to do with Biden like the misinformed like to claim. Or maybe Biden is also the president in Argentina too. Comprende?

https://www.reuters.com/world/americ...ng-2023-05-12/

I disagree. Please note that Oil Field Ace is questioning the "cost difference between 1/20/2020 to 7/28/2023," not the current rate of inflation.

Inflation kicked off earlier in the USA than it did in other places, because of Biden's $1.9 trillion American Rescue Plan (ARP). From your HBR article, "On the demand side, many countries funneled large sums of money to households and companies during the pandemic, to ensure that they could manage lockdowns and layoffs. That increased the money supply and may have contributed to inflation." As Larry Summers and our own Texas Contrarian pointed out, the ARP way overdid that. Thanks for the article btw, it was an interesting read.

Anyway, in June, 2021, YoY CPI inflation in the USA was 5.4%, compared to 1.9% in the EU.

The Fed didn't help matters much either. The Fed Funds rate was 1% going into June, 2021, way below inflation. It should have been tightening in reaction to the massive fiscal stimulus from the ARP.

About your other article, I visited the central bank of Argentina museum in Buenos Aires. Inflation there has been a perennial problem. It was ridiculous. They were always doing something like reverse splits for the currency. You'd trade in your million peso banknotes for one peso banknotes. The governments weren't willing to jack up interest rates and stop printing money, because they figured they'd lose the next election. Yeah, the solution isn't easy. We suffered through a recession, reduced GDP growth, and high unemployment between about 1980 and 1988 here in the USA when Volcker jacked up interest rates. But it was well worth it, to keep from going the same way as Argentina.

[winn dixie]

The current record inflation we've had is a direct result from trumpfs failed trade policies. Especially with China. It started before Biden left office.

[Tiny]

Originally Posted by winn dixie

The current record inflation we've had is a direct result from trumpfs failed trade policies. Especially with China. It started before Biden left office.

Interesting theory. Yes, the tariffs increased prices. But inflation was running around 2% from when the tariffs were imposed, up until the American Rescue Plan was passed.

I bet supply chain dislocations which increased inflation were amplified by the tariffs. Biden should have removed the tariffs, on items like textiles and cheap consumer electronics anyway, but he didn't. So he should share the blame.

[oilfieldace]

Originally Posted by Tiny

Interesting theory. Yes, the tariffs increased prices. But inflation was running around 2% from when the tariffs were imposed, up until the American Rescue Plan was passed.

I bet supply chain dislocations which increased inflation were amplified by the tariffs. Biden should have removed the tariffs, on items like textiles and cheap consumer electronics anyway, but he didn't. So he should share the blame.

In Texas it isn’t a theory, it’s horse shit without the first fact or any knowledge of economics. Besides it had absolutely nothing to do with the post , only one lost soul attempting to hijack the thread with another one of his anti Trump rants. Trump nor Biden was mentioned in my post. I never said it was either one of them was to blame, since the poster had no clue how to respond he chose to bash Trump.

I don’t understand how they can say inflation has went down , when cost of supplies has remained virtually the same. I don’t know about the other parts of the state but gas is n
On the rise again, not at the pace as 3-5 months ago but still trending up.

[Tiny]

Originally Posted by oilfieldace

I don’t understand how they can say inflation has went down , when cost of supplies has remained virtually the same. I don’t know about the other parts of the state but gas is n
On the rise again, not at the pace as 3-5 months ago but still trending up.

Yes, I agree more or less. CPI inflation has gone down. But a good part of the reason was lower energy prices. And as you know the price of oil went back up in July. The core CPI (less energy and food) and PCE Price Index would indicate inflation has still been running around 4% per annum or higher. The month-on-month figures for June actually would indicate less, but that's just one month.

I calculated the increase in the CPI Index over the period you mentioned, 1/20/2020 to 7/28/2023, and it's 17.2%. And most of that, 15.7% is after Biden took office. True, Biden to a large degree didn't have control over that. Supply chain hang ups, post COVID supply shortages, and Fed policy were beyond the control of the Biden administration. However, Biden's American Rescue Plan was just plain stupid. Larry Summers, the most prominent Democratic Party economist alive today, was shouting that from the rooftops before the bill was passed. Not only did it kick off inflation in the USA, but it added $1.9 trillion to our national debt.

Originally Posted by oilfieldace

In Texas it isn’t a theory, it’s horse shit without the first fact or any knowledge of economics.

As to Winn Dixie's post, the effect on inflation from the tariffs occurred mostly before COVID. Still, if Biden had removed them, that would have had a positive effect on prices. I agree with WD 100% that the tariffs were a bad idea.

[ICU 812]

The stats can be figured and jiggered any way you want, but the price of everything is still wy above what it used to be, and my income is not.

We took our grand kids out for frozen yogurt last week. For the four of us it came to $44!

McDonalds and Burger King used to offer a big burger for a dollar . . .now they go for $5.

It is not just food. Everything is up, housing, clothing, transportation, education . . .I am looking at buying a five year old used car foe something in the range of $30,000.

Whatever the "good" number or inflation is, the price for every thing will still be too high.

[oilfieldace]

Originally Posted by winn dixie

The current record inflation we've had is a direct result from trumpfs failed trade policies. Especially with China. It started before Biden left office.

Two things the post didn’t ask who or what caused inflation and too my knowledge Biden hasn’t left office.