Jump to content

Are signs of inflation becoming more common?


Recommended Posts

We haven't been impacted in any meaningful way with inflation just yet.
BUT, I was looking at prices of new Jeep Wranglers last month and a top, or near top of the line Wrangler was listing at around $50,000.
($40,000 would also get a pretty nice unit too)
Yesterday, while again looking at online prices, they were listing at around $60,000.
Is that just because it's a "Jeep" or are others also finding astonishing price increases in other areas?

 

Link to comment
Share on other sites

A lot of new vehicles prices are creeping up because of chip shortages.  I read an article yesterday that said some Jeeps purchased a year ago are bringing more than the original cost because new ones are unavailable.   Inflation is certainly hitting the building industry hard.  I priced 4" PVC pipe 6 months ago at $11.68.  A couple of months ago the price was $18.  Now the price is $21.  Lumber is crazy expensive. 

Link to comment
Share on other sites

In the case of autos I think a lot of the price increases are due to chip shortages. The manufacturers are paying a premium and passing it on. One reason the used car market is so hot.

Edit: Randy and I must have hit the post button at about the same time.

Edited by Chalkie
Link to comment
Share on other sites

yes lumber.

yes fuel.

yes food.

i need to work on my trains, and at the cost of a sheet of plywood. ($60.- $85.00 usd) my rr might just go bankrupt.

cost $100.usd to fill my fuel tank on my pu truck. and that's only four days commute.

i have had to cut back on what i buy at the store. some days i do not have a quite belly... but maybe this says i can lose some weight?

heck even the dmv has raised there tax rates to reg a truck, my 2001 fiver is now costing me over $200.usd a year. up $22.00 from last year. and that was more than the year before.

Link to comment
Share on other sites

S&P 500 at Record Close as Data Ease Inflation Worries

Joseph Woelfel 6/25/2021

Excerpt:

"The S&P 500 closed at a record in mixed trading Friday amid optimism about the U.S. economic recovery.

Sentiment was boosted by the announcement of a roughly $1 billion bipartisan infrastructure deal and a report on inflation that came in as expected.

The Dow Jones Industrial Average finished up 237 points, or 0.69%, to 34,433 and S&P 500 gained 0.33%. The Nasdaq moved in and out of positive territory during the session before ending down 0.06%.

For the week, the Dow industrials jumped 3.4%, the S&P 500 added 2.7% and the Nasdaq moved up 2.4%.

The personal consumption expenditures price gauge - the Federal Reserve's preferred inflation measure - rose 0.4% in May, below forecasts. The data eased worries about a rapid rise in prices as the U.S. economy makes its way out of the COVID-19 pandemic.

Personal spending, meanwhile, was unchanged last month and trailed forecasts.

"We don't believe that this data will impact the Fed's current plans for reducing extraordinary stimulus (i.e. "tapering") and rate hikes," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

"They haven't publicized their plans explicitly, but between the most recent Dot Plot and Fed speeches, they have shown interest in beginning a tapering plan in the next six to 12 months (and announcing that plan within three to six months) and potentially raising rates as soon as 18 months from now," he added.

Markets have calmed this week following assurances from Federal Reserve Chairman Jerome Powell that the central bank would remain accommodative and wasn't close to raising interest rates.

Shares of large U.S. banks such as Wells Fargo and Bank of America rose Friday after the Federal Reserve said banks "continue to have strong capital levels and could continue lending to households and businesses during a severe recession."

The Federal Reserve released its annual stress-test report on Thursday."

More in the original article from "The Street" here: https://www.msn.com/en-us/money/markets/stocks-rise-on-infrastructure-deal-and-as-data-ease-inflation-worries/ar-AALrIhY

Edited by RV_
Link to comment
Share on other sites

My personal opinion is that the world is still short of sone items that will ease over the next year. Some of us are coming out of this pandemic in first world countries, but supply sources in poorer countries are still fighting the variants that are increasing death tolls in countries where there are no vaccines available. Thus the push to help them with vaccines to actually help ourselves with less infections coming here from them, as well as helping them recover and get production back up to pre-pandemic levels.

Some of our raw materials sources are in the middle of a resurgence (like we may see here in the unvaccinated this winter) coming out of this pandemic.

Chips are in short supply but getting better daily. Wood will be back to near normal soon as opening the borders to Canada will ease the price of wood, since they are a main supplier of our wood and wood products.

At this moment in time I believe the economic recovery will continue as the vaccine research presses on and makes even more breakthroughs in both efficiencies broad spectrum COVID solutions. And more supplier and first world nations come completely back to full production.

That just my opinion.

 

Link to comment
Share on other sites

Many people have it backwards.  Inflation isn't when prices rise, it's when the government increases the amount of money in circulation without corresponding increases in productivity or supply.  Price increases naturally follow this.  When the value of the dollar drops, you need more of them to buy the same product or service.

The real root cause of today's price increases are the government handouts over the past year that increased the money supply, making each dollar worth less.

Edit:  Whoohoo!  The board just told me my rank has been increased to Rookie! (for the third time).

Edited by Lou Schneider
Link to comment
Share on other sites

  • 3 weeks later...

does it really matter why.

all i know is i do not have enough money to make things work. heck i would shut down this web access. but on a contract. so can not shut down with out a $$$ penalty.

i need to start flea-baying my life away. after there "fees" i might make a couple bucks.

Link to comment
Share on other sites

On 7/10/2021 at 2:40 PM, Lou Schneider said:

Many people have it backwards.  Inflation isn't when prices rise, it's when the government increases the amount of money in circulation without corresponding increases in productivity or supply.  Price increases naturally follow this.  When the value of the dollar drops, you need more of them to buy the same product or service.

The real root cause of today's price increases are the government handouts over the past year that increased the money supply, making each dollar worth less.

Edit:  Whoohoo!  The board just told me my rank has been increased to Rookie! (for the third time).

Lou, you are ignoring supply and demand, lack of supply to meet the current demand is the primary driver in the rising prices. If there were as many chips available as car manufactures needed there would not be the increase in car prices we are seeing.  The same is true for other products where supply does not match demand.

Link to comment
Share on other sites

And if you can get a good grass fire going via the gossip telegraph of social media and "the news" about something being in short supply and never again going to be available like cars or pickup trucks...

folks roar out and finance in a new one because, you know.... I got one before the price went up.... 

Link to comment
Share on other sites

On 7/7/2021 at 8:33 AM, Rich&Sylvia said:

We haven't been impacted in any meaningful way with inflation just yet.
BUT, I was looking at prices of new Jeep Wranglers last month and a top, or near top of the line Wrangler was listing at around $50,000.
($40,000 would also get a pretty nice unit too)
Yesterday, while again looking at online prices, they were listing at around $60,000.
Is that just because it's a "Jeep" or are others also finding astonishing price increases in other areas?

 

MSRP prices haven't raised significantly, what has changed is the % of MSRP that it takes to buy the vehicles is up.  Supply / Demand in the new car market is driving dealers to sell at or above MSRPs in some markets which is a new thing.

Link to comment
Share on other sites

I would never buy anything with scalping prices. On the other hand I don't need the latest and greatest except in my tech toys and I just bought my Forester in 2019 and my Model Y 13 months ago. I loved buying my Model Y and will never go to any stealership again, which nickname I gave them decades ago. Thank goodness for used cars not from dealers and for getting my used Surface devices and computers refurbished or used. 

I believe it is going to get worse before it gets better especially with food prices.

Link to comment
Share on other sites

On 7/7/2021 at 6:55 AM, packnrat said:

yes lumber.

yes fuel.

yes food.

i need to work on my trains, and at the cost of a sheet of plywood. ($60.- $85.00 usd) my rr might just go bankrupt.

cost $100.usd to fill my fuel tank on my pu truck. and that's only four days commute.

i have had to cut back on what i buy at the store. some days i do not have a quite belly... but maybe this says i can lose some weight?

heck even the dmv has raised there tax rates to reg a truck, my 2001 fiver is now costing me over $200.usd a year. up $22.00 from last year. and that was more than the year before.

Plywood prices are falling because the saw mills are back working. May take time to get to your area, but the mills are running!

 

Link to comment
Share on other sites

On 7/26/2021 at 9:23 AM, packnrat said:

i need to start flea-baying my life away. after there "fees" i might make a couple bucks.

Craig's list does not charge me a fee to sell things and people come to us to pick things up so there's no shipping charges, either.

Linda

Link to comment
Share on other sites

4 hours ago, RV_ said:

and will never go to any stealership again,

I took advice from a former neighbor who traded frequently and made my latest car purchase from Car Max. They are much easier to deal with than any authorized dealer that I have ever done business with. Carvana is now selling used cars online, but I don't yet know anyone who has bought from them.

We are now returning from Escapade after 2+ weeks in WY and so far diesel prices have been running about 20¢/gallon less than when we traveled the other direction. I paid $3.219 in Ft Collins, CO yesterday and $3.349 in Oakley, KS today.

Link to comment
Share on other sites

5 hours ago, sandsys said:

Craig's list does not charge me a fee to sell things and people come to us to pick things up so there's no shipping charges, either.

Linda

I've actually shipped a few items from buyers who contacted me on CL and so far haven't had a problem.

Link to comment
Share on other sites

i lot of what i have to sell is not really crags list stuff. books, trains, other hobby stuff, etc. but a couple of the big things would need to be picked up at my driveway.  but no way would i want them coming to my door, but the sheriffs office does have a dedicated spot for such.

Link to comment
Share on other sites

On 7/26/2021 at 6:26 PM, Kirk W said:

The law of supply and demand is one of the most basic principles of economic theory, but the money supply is also a factor.

Understanding Inflation from Investopedia

Hope you arrived home safe and sound!

Thanks for the link, that also reinforces what Lou Schneider said.

Edited by Ray,IN
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

×
×
  • Create New...