I was at the grocery store the other day. I just needed a few things. Seriously, just a few things. It all fit into one bag. $75 dollars. I mean…
It won’t surprise any of you that the cost of living has gone up. The surprise is by how much.
The Consumer Price Index data for January showed that prices have climbed 7.5 percent over the past year. That’s the fastest pace in 40 years.
While economists believe inflation will cool by the end of the the year, most did not expect the CPI to be this high.
It’s a real problem. Not just for consumers, but for the White House too. President Biden’s poll numbers are low. His plate is full. Covid. Ukraine. Now, the economy.
Let’s face it. We worry about Covid We worry about Ukraine When we can’t afford a gallon of milk or fill our cars with gas, that’s a real problem. Biden’s fault or not, the person in charge gets the blame.
The President told Lester Holt that supply chain issues have caused this. Republicans blame trillions of dollars in government spending.
Whatever the reason, it appears it will get worse before it gets better. Pepsi is talking about raising prices, so is Kellogg’s.
Soda pop, cereal and Eggos. That’s when it starts to hurt.
What can be done besides ride it out? The Federal Reserve is talking about raising interest rates. Maybe sooner than expected. When it does happen, don’t expect quick relief. Six months at best.
The good news here is that the economy is strong. It appears these higher prices are the result of that rather than the pandemic. According to the New York Times, the price increases in 2021 came from supply chain issues. Those sent used car and furniture prices up sharply and drove up inflation.
I get it. These things come in cycles. It will get better. Right now, it hurts. I have to fill up the tank today. Need a few things at the grocery store. I’m learning to just look away when I pay.