Inflation: Making Do With Less

At Costco Peanut M&M's crept to $12,50
over the past year, then Boom! $19.99 but
"marked down" to $15.99. C'mon, man!

Eighteen (18) months ago this humble chronicler saw the warning signs of inflation:

Now the Fed is buying corporate debt--even some risky pieces that pension funds won't touch--and the debt of state and local governments. It has crossed a line and can't go back. ("Why are you letting [State name] go bankrupt?")

Eventually the tidal wave of government debt and paper money will cause an inflation that will dwarf that of the 1970's. Thankfully, with a life expectancy of perhaps 20 years, I won't have to suffer through much of it.

Five (5) months ago a repeat of the 1970's seemed inevitable, though the experts resisted that conclusion:

The economy is warm if not hot, the Administration is proposing $trillions in additional spending, and the Federal Reserve is promising to keep rates low.

Now everyone sees it.

One bright spot: liquor prices are about the same,
and there is plentiful supply.

WSJ, 10/13: Accelerating Inflation Spreads Through the Economy

U.S. inflation accelerated last month and remained at its highest rate in over a decade, with price increases from pandemic-related labor and materials shortages rippling through the economy.

The Labor Department said last month’s consumer-price index, which measures what consumers pay for goods and services, rose by 5.4% from a year earlier, in unadjusted terms.

WaPo, 10/15: Uncomfortable inflation is here, and it’s changing the economy

News this week that U.S. inflation is running at a 13-year high of 5.4 percent confirmed what many Americans already know as they juggle their budgets: Food, energy and shelter costs are all rising rapidly, adding to the strain Americans were already dealing with from the higher costs of hard-to-find goods such as cars, dishwashers and washing machines...

Workers are demanding pay increases because they can see their wages aren’t buying as much with so many everyday necessities costing more, including rent. That leads companies to hike prices more, then workers turn around and demand another pay raise. Economists call this phenomenon a “wage-price spiral.”

The evidence is especially noticeable in the items we buy weekly. Where I shop, prices for beef and gasoline are more than 50% higher than in 2019.

I don't drive much these days, and I've learned more chicken and pork recipes. Like the 1970's, we're making do with less.