U.S. Inflation Relief Kicking In

Look up the term deflation to see its potential consequences. A slowing rate of inflation is a good thing, right? But it has limits.

Modest price reversals for some things balance increases in others.
 

MACKTEXAS said:
Yes and no. My wife and I bought a house in 1980. In the coming years, the value rose steadily, but then there was a major decline in home values for several consecutive years prior to the time we sold it in 2010. We lost money because we sold the house for less than what we paid for it. In time, values again rose, but we never reaped the benefit of the turnaround.
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Ok, so cats and dogs are living together... mass hysteria! The end is nigh, and nobody should ever be happy.

Does that about sum up your sentiments?
 
This is another conundrum. Short term guessing as to what or why a price goes up or down is not an indicator of inflation or deflation. Lets address home prices in my area. Houses have been sitting on the market in my subdivision for longer than they did in say 2020. The market was red hot then…interest rates lower than they had been in god knows how long. Those homes purchased in that time frame have dropped a bit in market pricing. My home has lost about 7 percent from it’s high value. If I wanted to sell it I would get less than I would of 3-4 years ago. This is about supply, demand and affordability. The real test of inflation is cost to build…not what is on the market.
 

dilettante said:
Modest price reversals for some things balance increases in others.
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A modest reduction in gas prices - which change up and down anyway all the time over the years - does not balance the higher costs I'm paying for everything else. I average buying one tank of gas per month.
 
Twostep said:
I can worry myself sick over nickles and dimes or continue living.
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that is my point , watch the two biggest items we have which are where we live and wht we drive and forget about the small stuff
as kitces points out in his research

EXECUTIVE SUMMARY​

The personal finance space has no shortage of tips to managing your spending, from bag lunches in lieu of eating out at work to home-brewed coffee instead of the morning Starbucks routine. Yet the reality seems to be that in so many situations, we dig ourselves a tremendous spending hole because of our big purchases, and then worry tremendously about the small stuff trying to make up the difference. If you really want to change your financial reality for the better, though, it's the big stuff you really need to focus on - where you live, and what you drive.


Fix Spending By Focusing On The Big Stuff That Matters!
 
Well maybe you should ask CNBC and pretty much every other source of news and information why they had no alternative but to report that yes indeed US inflation in April was at it lowest rate in over four years.
 
dilettante said:
Well maybe you should ask CNBC and pretty much every other source of news and information why they had no alternative but to report that yes indeed US inflation in April was at it lowest rate in over four years.
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Okay. How about asking CNN, as well. It seems to me you quoted them in another thread, so I suppose you recognize them as a reliable source.
FROM CNN
 
Whataboutism or whataboutery (as in "what about ...?")

the strategy of responding to an accusation with a counter-accusation instead of a defense against the original accusation. Whataboutism. Tactic. Propaganda technique.
 
mathjak107 said:
that is my point , watch the two biggest items we have which are where we live and wht we drive and forget about the small stuff
as kitces points out in his research

EXECUTIVE SUMMARY​

The personal finance space has no shortage of tips to managing your spending, from bag lunches in lieu of eating out at work to home-brewed coffee instead of the morning Starbucks routine. Yet the reality seems to be that in so many situations, we dig ourselves a tremendous spending hole because of our big purchases, and then worry tremendously about the small stuff trying to make up the difference. If you really want to change your financial reality for the better, though, it's the big stuff you really need to focus on - where you live, and what you drive.


Fix Spending By Focusing On The Big Stuff That Matters!
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Why should I watch house and vehicle?
 
mathjak107 said:
read the paper i posted
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Key takeaway from the paper you posted:

"An article I read this morning . . . advocates a wide array of spending tips to manage your finances. Eat at home more often; skip the morning Starbucks; bring a shopping list to the grocery store so that you do less impulse buying; clip those coupons; rent movies instead of going out. The list went on and on." . . . Instead of doing so much to sweat this small stuff, I wish that we could do a better job focusing on what really matters - where we live, and what we drive. Because the reality is that for most people, our dominating expenses are actually not all this little stuff; it's our cost for shelter and transportation."
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[Also shop and compare rates for home and auto insurance, electric/energy plans, phone / internet plans, entertainment plans.]
 
TPX3HG.jpg
 
H‑E‑B is selling large eggs for $3.82. Aldi is probably even cheaper. Here’s the thing. Many prices may never go down, but at least they’ve quit going up like a skyrocket. Media denied inflation for years, but now all of a sudden they’re noticing prices. SMH.
 
Not sure how selling a home began but again luck was on our side when we sold. It was a sellers market, our 5 bedroom home on 8 acres of land with mortgage paid sold for 3 times what we paid for it.

No real investment strategy just plodding along with reinvesting dividends, some mutual funds, Cd's & annuities.
 
In our area the price of eggs went down a little bit but the price of beef keeps on going up. I still see some shortage of products as we experienced through the pandemic. Gas price varies from week to week. (Will vary again soon as vacation time arrives or hurricanes.)
 
I guess wage increases are only a good thing when they happen for your own class and nobody else.

"I don't need to outrun the bear, I just need to outrun you!"
 

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