Inflation? Tell me it ain't so.

l just ran across this example of inflation a couple of weeks ago. On August 28, 2023 I ordered a small wood cabinet from Amazon. Dear wife said she would like to have another so I pulled up my Amazon closed orders to see exactly what I had purchased. I was shocked to see the price I paid a year ago was $339. 00. To buy the same exact cabinet now is $499.00. that is approximately a 47% price increase. But that is no problem since we will probably be getting about a 2.5% inflation adjustment from Social Security next year. The Gobbment is really giving skewed figures to downplay the true rate of inflation.
 

Met the DW for lunch yesterday at a place we have visited in the past... our last lunch they ran about $30, yesterday was $55
A lot of money for 2 sandwiches and a beer.
 

Considering that fuel prices have not gone up that much (gas cost more in the Obama administration), I think these gigantic price increases of 50+% are not warranted. Assuming 7% average inflation (which is a high estimate), there should be about a 32% total price increase in 4 years. This is calculated using 7% interest compounded continuously. If we use 5%, the price increase in 4 years should be about 22%. I used the calculator at Compound Interest Calculator using a principal of $100.
 
The government calculates inflation based on a "basket" of specific items. Like a survey, it's close, but not precise. Add to that that the government changes what items are in the basket, because they say it gives a more accurate picture of what's really happening. Of course this also allows them to create the image of inflation that is the most desirable. I don't actually know if they are that flagrant about not giving an actual picture or not. But it would be one explanation for why cost of living increases in social security, never keep up with the cost of living. And of course when corporations hear the word inflation, they can take advantage and use that to justify sometimes egregious price increases.
 
Michael Z said:
Huge Price increases at our home store (Menards)! Curiously, our Aldi foods prices have not gone up that much at all.
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I've noticed that too, at least at Aldi. There is not a Menards around here. Prices at Aldi have gone up a little, but not as much as Walmart, and no where near as much as the regular grocery chains.
 
I may have to lower the price on my Buyer’s Strike! Leave It On the Shelf t-shirts. Nobody is buying them.
 
Inflation is not new. My parents bought their home in 1960 for $11,000, and it sold for $160,000, 50 years later. Inflation wasn't all that bad went it was sold. Inflation is a two way street, it may benefit some and pose a burden on others.

There's an old Perry Mason 1950s episode where Perry & Della are eating at snooty French restaurant, and a cup of coffee was $1. They couldn't believe anybody could charge $1 for a cup of coffee. (eggs, toast and coffee cost 25 cents back then)
They never heard of Starbucks.
 
I have noticed some items seem to be increasing, but I also have a tendency to overlook items that are decreasing, staying the same, etc. My own CPI is at 2.7% annual.
 
It's the Millions of immigrants and foreign students!
Banquet has great frozen Spaghetti Dinners, since they moved them in a Freezer to a different area in the store freezers I haven't been able
to buy them for a year now. Can't find Banquet Spaghetti Dinners. There is an open space in the freezer of Banquet Diners.
 
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