Inflation?

[byusteeler]

Am I the only one feeling a little overwhelmed by inflation? I keep hearing that consumer confidence is still high and inflation is under control, Although there is some concern since the hurricane. But even before Katrina, I find groceries are getting more expensive, gas is expensive and over the past year everyone of my utilities has experienced a rate hike. Am I the only one who is feeling the squeeze. I keep doing anything new I find to cut back or save money but it seems for every step I take forward something beyond my control sends me one or two steps back.

[PRICEPLUS]

No. You are not the only one feeling the pinch. Gas has made driving more expensive as well as delivery costs for goods. The higher energy costs get passed on to us as consumers. Wait till the winter comes and people see the gas and oil prices for home heating!

[byusteeler]

Although I do not wish this on anyone, I am glad to know that I am not the only one feeling this way. It seems everyone around me is just going on status quo as though nothing has changed and they have unlimited resources.

[VJW]

Originally Posted by byusteeler

Am I the only one feeling a little overwhelmed by inflation?

You have plenty of company.

I keep hearing that consumer confidence is still high

I’m sure you’re “hearing” it (as I am as well), but it’s simply not true.

and inflation is under control

Now we’re back to how you calculate it. You would be shocked to see what the feds now consider a “market basket” of goods and services on which they calculate the inflation rate.

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[cercis]

I've heard that they leave out many of the most important staples to calculate inflation. Now you've made me curious and I'll have to go google.

[cercis]

Okay, it's a major pain to wade through http://www.bls.gov/cpi/cpifaq.htm#Question_3 and so far I didn't really see a detailed breakdown of what was included.

[Bruce Wayne]

In the UK inflation is a real risk, although the government regularly report the opposite.

[VJW]

Originally Posted by cercis

Okay, it's a major pain to wade through http://www.bls.gov/cpi/cpifaq.htm#Question_3 and so far I didn't really see a detailed breakdown of what was included.

OK, this is from several years ago, but was a recent ‘Market Basket’ of goods and services, supposedly representing the budget of the average American.

There are seven broad categories:

* HOUSING - 41%

* FOOD & BEVERAGES - 18% (1/3 spent eating out)

* TRANSPORTATION - 18%

* MEDICAL - 6%

* APPAREL - 6%

* ENTERTAINMENT - 4%

* OTHER - 7% (includes both tobacco & education & misc.)

~~~~~~

Just SOME of the items the supposedly representative ‘Market Basket’ doesn't include:

* Health Insurance Premium increases
* Medicare Insurance Premium increases (almost 40 million people)
* New Car price increases
* Mortgage payment increases

How many people do you know (outside of the young & healthy) who only spend 6% of their income on medical related expenses ?

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[jmjj215]

Of all my expenses, taxes are my highest when I include FICA (which I do). That's not because I pay tons of taxes, but because our other expenses are thankfully low. I'll look at my budget later and compare our spending to this market basket. VJW - it's on gross income right?

[jmjj215]

Okay, it didn't take as long as I thought - our spending compared to the market basket, against gross income. Feel free to ask me to clarify any categories.

Expenses	% of expenses	% of gross
	Blow	 		   0.7%	    0.4%
	Charitable 		14.9%	9.4%
	Clothing		  0.5%	  0.3%
	Debts	 		  0.0%	   0.0%
	Food	 		  7.6%	   4.8%
	Housing 		17.0%	10.7%
	Medical/Health	     13.8%   8.7%
	Personal		11.7%	7.4%
	Recreation	       0.2%	0.1%
	Taxes	 		  22.6%	 14.2%
	Transportation	     9.4%    5.9%
	Utilities		    1.7%    1.1%
					       63.1%

The other 36.9% is/has gone toward our house downpayment or tuition

[VJW]

Originally Posted by jmjj215

Of all my expenses, taxes are my highest when I include FICA (which I do).

Of course, FICA is not a tax.

:P

VJW - it's on gross income right?

UM, if you add up the percentages from the seven categories, they add up to 100%, so by default it could not be the gross.

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[Dingoluv4eva]

Always gonna be some inflation. The economy overall is getting hit with more bad news than good..

but there are a few things like cell phone bills, that thank god have gotten cheaper, and cable internet etc..

and now with House Phone service switching over to working over the internet,.. its getting cheaper too.

OIL and GAS is just a resource that is becoming naturally more and more valuable as every year there is less of it, and on top of that more and more people rely on it.

Housing has gotten crazy high prices, but eventually with enought Interest Rate hikes, it will get to a point where the prices are out of reach of the buyers, cause more and more money will be needed to cover the interest on the principle when purchasing.. So that will eventually cool down, once there are less buyers out there.

Greenspan is doing a good job, I hate to be political, but we just need this bush guy to quit his job.. He has brought nothing but bad news since he arrived.

[VJW]

Originally Posted by Dingoluv4eva

Always gonna be some inflation.

CPI inflation was up 3.6% for the 12 months ended in August, and was up 3.3% in 2004.

Hardly mild.

Greenspan is doing a good job

Since when ?

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[rdeel2000]

I guess it is human nature to place the blame on someone so I guess Bush is as good as anyone. I'm sure he invited those terrorists to fly planes into our buildings just so that he could take our country to war. I'm also sure that he got on his cosmic telephone and asked God to send all the hurricanes we've been forced to deal with. Let's get real and stop looking for a scapegoat. Life happens and some of it stinks but somehow we manage to find a way to go on.

[VJW]

Others are not so ready to paper over massive incompetence with Straw Man arguments.

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[jmjj215]

Originally Posted by VJW

Of course, FICA is not a tax.

:P

UM, if you add up the percentages from the seven categories, they add up to 100%, so by default it could not be the gross.

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Perhaps I should've said it a bit different. In my budget, for the tax category I include FICA (which on my stub is social security and medicare (or medicaid, I can never remember which)).

By gross I was asking if the percentages are based on the take-home or gross salary of the consumer.

[jmjj215]

He has brought nothing but bad news since he arrived

It must be his 'karma' - sheesh.

[cercis]

Originally Posted by rdeel2000

I guess it is human nature to place the blame on someone so I guess Bush is as good as anyone. I'm sure he invited those terrorists to fly planes into our buildings just so that he could take our country to war. I'm also sure that he got on his cosmic telephone and asked God to send all the hurricanes we've been forced to deal with. Let's get real and stop looking for a scapegoat. Life happens and some of it stinks but somehow we manage to find a way to go on.

I expect my gov't to heed warnings about terrorists using airplanes and, oh, I don't know, maybe put some stronger airport security - maybe on the level of European standards. (which we still aren't at).

I expect my president to heed the warnings of the outgoing president about major terrorist threats and to follow-up with the task force he put in place - even one meeting would have been nice.

I expect my president to see that 1) war rarely affects the person we want it to and is more likely to affect the innocents of the country, 2) Iraq was not involved, 3) Saudi arabia was and 4) you need an exit strategy beyond "we'll be welcomed with open arms".

I expect my president to listen to scientists say global warming is a reality and not say it's "fuzzy science" while allowing industry to continue to do things that increase the effects of global warming. Could he prevent global warming? Not completely, no, but he could at least take it seriously.

I expect my gov't to be prepared for a natural disaster and to mobilize. He was asked for help by the governor, but refused to provide it unless she would submit to martial law (which wouldn't have been necessary if help had gotten there sooner). She asked for help before the hurricane hit.

I expect my president to live in reality and not say "you're doing a heck of a job" to someone who is clearly not.

Now those may seem unreasonable to you. To me, those are the bare minimum and what we came to expect from the Clinton administration. Remember those days, when we had time to worry about the definition of "sex"?

[Snoopy2645]

wHAT I find odd is gas is 3 times what it was when I first started driving it was $1 a gallon then now its hovering around $3 a gallon housing costs have went up alot & everything else is going up but wages they are still the same something strange about that picture??

[VJW]

Originally Posted by jmjj215

By gross I was asking if the percentages are based on the take-home or gross salary of the consumer.

Well, as I previously posted, the categories add up to 100% and there are no taxes in any category, so by default it could not be the gross. The listed categories reference net income.

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