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Inflation/Price Increase

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Dry Brett Kavanaugh:
The consumer price increased by more than 5 percent in the last 12 months. Several economists forecast similar level of inflation until the end of 2022. I guess you can buy bunch of music recordings now and tell your family members that you are saving money.  ;D

The entire price increase in the two years, including the next year, would be around 10% (1.05 x 1.05=1.1). This means that our real income decrease by 10% in the two years. Do you have any plan or strategy to tackle this inflation/decline in real income?

https://www.bloomberg.com/news/articles/2021-11-12/economists-boost-u-s-inflation-forecasts-through-end-of-2022

MusicTurner:
Talking yesterday to a family member working for a shop selling outdoor equipment, she said that when they had to pay 2,000 Euros for a container unit transport from overseas a couple of years ago, the price had now gone up to ... more than 14,000 Euros.

Hard to see such developments not affecting prices, at least for a while, as regards a lot of imported goods ...

Pohjolas Daughter:

--- Quote from: MusicTurner on November 29, 2021, 01:11:18 PM ---Talking yesterday to a family member working for a shop selling outdoor equipment, she said that when they had to pay 2,000 Euros for a container unit transport from overseas a couple of years ago, the price had now gone up to ... more than 14,000 Euros.

Hard to see such developments not affecting prices, at least for a while, as regards a lot of imported goods ...

--- End quote ---
Sorry to hear of your family member's problems; it must be rough.

It's amazing to hear of all of the problems regarding container ships:  prices for them have shot sky-high, problems getting ahold of them, containers in ports but problems with not enough staff (I believe) to unload them, not enough truckers to transport them to where they are needed, etc.   :(

PD

drogulus:
     People are spending their higher incomes into a supply shortage. US income shot up in 2020 instead of falling because the government acted more vigorously than it usually does. But as in the past inflation jumps when supply constraints are severe. The last time supply was severely restricted was in the '70s and before that the late '40s when gigantic domestic savings clashed with an economy that couldn't yet produce consumer goods like it could bombers, tanks and other paraphernalia to fight a world war. It won't be nearly that bad this time.

     Oh, and inflation often fails to meet "expectations". The most dire predictions tend to come just before inflation subsides, as I expect it will in a few months. So, enjoy it while it lasts, because if the inflationistas get their way you can expect the economy to slow and you'll have fewer of those lovely big dollars to play with. Larry Summers has risen from the grave.

drogulus:

     Here's a lovely inflation fact. The increase in wages is a component in the headline figure. Wages are increasing. People don't complain about having more dollars to buy more costly goods. They complain about the nominal cost, but don't bother to calculate the real cost against income.

     Bloomberg columnist Barry Ritholtz explains the wage inflation thing.

     Thing

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