Nov CPI data shows 6.8% inflation, highest in 40 yearshttps://www.usatoday.com/story/money/2021/12/10/inflation-rate-consumer-prices-rose-6-8-annually-november/6455689001/
definitely puts pressure on employers for the upcoming annual raise discussions with employees. The old standby 2% raise is just not going to cut it this time around.
Trump Republicans are responsible for the continuance of the Covid crisis-- via their refusal of vaccines and masks, and spreading anti-vax and anti-max disinformation.
The continuance of the covid crisis has caused the supply disruptions which are the root cause of the current inflation.
The current inflation should therefore be referred to as "Trump Republican inflation".
...but the current situation is never going to be referred to as "Trump Republican inflation".... partly because the mainstream news media will never adopt such a partisan stance, no matter how accurate it may be, and partly because it just ain't catchy, my dude.
People have trouble correlating cause and effect if the two are separated by the passage of time. Most low-information, disengaged people are going to look at the situation and blame the guy in charge. We're not going to score any points blaming the other guy, even if we're right. We have to fix the problem.
so I see no reason why we can't score a few doing the same thing-- except in our case, we have the TRUTH on our side.
and I disagree-- I think "Trump Republican inflation" is somewhat catchy!
The problem will be solved as the supply situation gets straightened out.
In the meantime, in the mainstream media won't spread the message, it's up to US.
Higher prices at the grocery store? It's because of TRUMP REPUBLICAN INFLATION!!!
is that the groundwork was laid during the Bush administration. It was accelerated with the QE that ran almost non-stop from the banking crisis thru the Obama & Trump administrations.
The economic forces finally caught up because of the pandemic pressures.
IMO, if the pandemic did not bring it to a head, this would have happened normally at the next Presidential election.
Additionally, if the economy had been allowed to run normally starting in the Obama administration, we would have seen inflation but not the snowballed inflation we are experiencing (and will experience) now.
Not a cent. Nada as in nothing and yes, prices have skyrocketed.
Bacon at the local co-op was going for $22.00/lb. the other day. That's right, $22.00 a pound!!!!!
Gas prices are already coming down. After media created hysteria and panic, turkeys were abundant and cheap this past Thanksgiving. Many goods and services remain significantly higher (cars, appliances, certain parts and materials and resources) because we still have not emerged fully from an historic pandemic.
I will get concerned if this trend continues into the spring of next year.
Businesses that have thrived that do not reward their employees will see many of their core employees leave for other opportunities. My husband plans to just retire because of under appreciation and under compensation.
We are now also seeing changes in spending and investing habits that will increase the velocity of money, compounding the inflationary pressure of the added supply.
I think more likely the rate of price increases will level off as the market adjusts to the new level of currency in circulation.
The current supply chain issues is in two parts - we have supply shortages due to pandemic disruptions, but we also have high demand for goods and services because of additional money in circulation. Simply expecting prices to fall as supply catches up ignores the demand driven upward pressure. Increasing labor costs due to wages and short staffing will also make prices more likely to stick at current (or higher) levels.
I work a part time thankless retail job at mid priced retailer in upscale mall outside of Chicago. Anecdotally, our sales are up but many customers are also saying they are upgrading or replacing worn items with better quality items that they hope will last. They complain we have no sales, but are still buying. Company has done very well and has increased minimum pay to $15/ hr with some benefit possibilities depending on hours worked. They have no problem meeting payroll. I have noticed very minor price increases so far, just inventory backorders and fewer discounted items.
I think there will be an over supply of goods after pandemic bottleneck subsides and prices will self correct.
You may be right. We shall see.
Smaller moves in VoM mean more dollars moving than before the increase of M1.
which people hate around here was only up 3.2%, and that includes a lot of items (autos, used autos, appliances, etc.) that are still pandemic constrained.
The one thing that does concern me is anything using this gen or last gen microprocessing. Crypto currency has an essentially unlimited appetitive for it at (for our purposes) infinite pricing. This is having an impact mostly on phones, computers, and some autos, but it could expand if left unchecked.
People are clearly associating the economy with inflation and that's going to be an anchor for this administration if it's not corrected going forward. We can't just get fixated on jobs numbers or GDP when inflation is making it difficult for people to even marginally live.
agree that big, big changes must come - including inflation, rejection of consumerism, stopping the war machine, reversing economic growth, reading better books, quitting the media, and abandoning normal. ??
When employers bump up salaries to keep up... up go their prices for their product or service they provide.
Workers demand higher wages (as they should), so that likely means either prices go up or people higher up take a pay cut to make up the difference. Which is more likely to happen?
If a company has 175,000 employees like Taco Bell... and the avg salary is 23,000
Just for round number sake... that's 4 Billion dollars a year in salary.
The CEO makes $4M a year.
Slash his salary from 4m to 400k... how's that going to cover employee pay? That's around $20 a year per employee.
ALL companies will increase the price of their product/service to compensate for increased labor costs.
Oh and no Fortune 500 company can find a qualified CEO who will work for $400k/year
Employers are not willing to allow wages to inflate at anything near the inflationary level. At least, not that I've seen.