Everything is so expensive! (just a vent)

[dvcgirl67]

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yes…scary headline. When it hit, the markets dipped…and then bounced. Why? A full 1/3 of the rise in consumer prices for May was from a 7.3% rise in used cars and trucks. That’s a phenomenon, as discussed in this thread, due to the supply crunch of new cars…due to the chip shortage….because of the pandemic. That’s a short term issue that will resolve as production ramps up and supply chain kinks are ironed out. Does anyone think that the price of used cars will increase rather than decline one year from now? I don’t. And neither does the forward looking markets.

 

[RamblingMad]

yes…scary headline. When it hit, the markets dipped…and then bounced. Why? A full 1/3 of the rise in consumer prices for May was from a 7.3% rise in used cars and trucks. That’s a phenomenon, as discussed in this thread, due to the supply crunch of new cars…due to the chip shortage….because of the pandemic. That’s a short term issue that will resolve as production ramps up and supply chain kinks are ironed out. Does anyone think that the price of used cars will increase rather than decline one year from now? I don’t. And neither does the forward looking markets.

The 7.3% number is seasonalized. It’s really up closer to 30%. And I doubt anyone thinks that will stick once supply catches up. However, higher rents are locked in for at least a year. And we’re seeing some wage pressure, which is good for 90% of the people living in the US.

I don’t think it was a terrible report. It’s really what happens next summer.

For this travel centric site it’s really about the increases in: airfare, rental cars, and eating out. All are up more than 2%.

 

[Heather07438]

yes…scary headline. When it hit, the markets dipped…and then bounced. Why? A full 1/3 of the rise in consumer prices for May was from a 7.3% rise in used cars and trucks. That’s a phenomenon, as discussed in this thread, due to the supply crunch of new cars…due to the chip shortage….because of the pandemic. That’s a short term issue that will resolve as production ramps up and supply chain kinks are ironed out. Does anyone think that the price of used cars will increase rather than decline one year from now? I don’t. And neither does the forward looking markets.

We needed a better work truck as the pandemic rolled in. We bought this one May 2020. Thank goodness- the trans went on the back up truck and would cost a crazy amount to replace had we waited to this year. Needed a heavy duty truck for masonry.


We’re also trying to buy a used trailer… the going price right now is close to buying one new nuts.

 

[dez1978]

That's basically the average for a 3/2 condo in our neighborhood. Our landlord raised our rent by $400/month when we renewed this year and at $3700, we are getting a great deal, despite the massive monthly increase.

I guess if the avg wage is 3x there than what it is here, then maybe thats acceptable. I just cannot imagine paying that much to rent something. But here a decent paying job is 15ish an hour. Corrections officers for instance, start off at 15.30/hr. But this state only requires a GED and basically a breathing body. And that is one of the better paying jobs, tho its still not nearly enough for what they deal with every day. What the equivalent of a corrections officer is at the max security mental health hospital is in the state, those positions make 16/hr. and they are pretty regularly getting the crap beat out of them, like orbital bone fractures, type beating. Not nearly enough pay for that either. But still, here it's a good paying job, and enough to pay rent, utilities, gas, food etc.

 

[DLgal]

I guess if the avg wage is 3x there than what it is here, then maybe thats acceptable. I just cannot imagine paying that much to rent something. But here a decent paying job is 15ish an hour. Corrections officers for instance, start off at 15.30/hr. But this state only requires a GED and basically a breathing body. And that is one of the better paying jobs, tho its still not nearly enough for what they deal with every day. What the equivalent of a corrections officer is at the max security mental health hospital is in the state, those positions make 16/hr. and they are pretty regularly getting the crap beat out of them, like orbital bone fractures, type beating. Not nearly enough pay for that either. But still, here it's a good paying job, and enough to pay rent, utilities, gas, food etc.

I can get a part time job right now at a supermarket for $17/hr. Wages are pretty high here, for the most part. My husband is a military officer, though. That pay is standard across the board regardless where you live, although we get a tax free housing allowance based on duty station zip code. Ours is around $3800/month. That's what we use to pay rent. I only work very part time from home a couple months a year.

The median income in my city is $93,000.

 

[dez1978]

I can get a part time job right now at a supermarket for $17/hr. Wages are pretty high here, for the most part. My husband is a military officer, though. That pay is standard across the board regardless where you live, although we get a tax free housing allowance based on duty station zip code. Ours is around $3800/month. That's what we use to pay rent. I only work very part time from home a couple months a year.

The median income in my city is $93,000.

Yeah, thats a substantial difference.

Just for grins I looked at an office typist job for the state of California, starting pay is 3144. Idk if thats bi monthly or per month. I am 2 steps above what that job would be equivalent to in my state. I get paid 1196 bi monthly and that includes hazard pay. But I suppose since housing is 1/3 of the cost it seems, I guess it kind of equals out.

 

[dvcgirl67]

The 7.3% number is seasonalized. It’s really up closer to 30%. And I doubt anyone thinks that will stick once supply catches up. However, higher rents are locked in for at least a year. And we’re seeing some wage pressure, which is good for 90% of the people living in the US.

I don’t think it was a terrible report. It’s really what happens next summer.

For this travel centric site it’s really about the increases in: airfare, rental cars, and eating out. All are up more than 2%.

Inflation is here...and as we've said there are a million factors involved. But I don't believe this is going to spiral into a 1970's situation. We've gotten so used to this incredibly low interest environment that we forget that even in the early 2000s, interest rates were much higher. We purchased our first home in 2000 and the interest rate for our mortgage was 8%. People would think the world was ending if we had that now.

Right now, there's over 5.4 Trillion dollars in "excess savings" around the world, we're about half of that at 2.6 Trillion. That's stimulus money and also a lot of money piling up because people didn't spend on services, specifically travel....for over a year. That money is beginning to flow in a big way, and that along with a lot of other factors is causing prices to soar in certain sectors. We're not seeing a lot of price sensitivity though....people are willing to pay the higher prices right now. I was just at my butcher's shop and he told me he had to raise his price on beef tenderloin from 28.99 a pound to 34.99...so quite a difference. He's still seeing people buy plenty of beef tenderloin.

I will tell you that we just booked a trip to Puerto Rico. We're going in November, which is shoulder season. The last time we went was January of 2019, which is considered high season. However, not only did we snag an amazing deal at a 5 star resort with a AAA discount that gave us 24% off. We went with their lowest price room for the trip....a garden view which is actually quite nice. Was $679, got it for $515. And then the flights...we flew business call in 2019 and paid $2,397. For this trip, also business....round trip was $1650. So we feel like we got a pretty sweet deal. The thing with travel right now, and likely for the next six months to a year....is you need to pack your patience. Staffing isn't up to speed yet and so you may need to wait longer for service. At this point...I'll serve myself, I just want to go somewhere nice and chill out. .

 

[RamblingMad]

Inflation is here...and as we've said there are a million factors involved. But I don't believe this is going to spiral into a 1970's situation. We've gotten so used to this incredibly low interest environment that we forget that even in the early 2000s, interest rates were much higher. We purchased our first home in 2000 and the interest rate for our mortgage was 8%. People would think the world was ending if we had that now.

Right now, there's over 5.4 Trillion dollars in "excess savings" around the world, we're about half of that at 2.6 Trillion. That's stimulus money and also a lot of money piling up because people didn't spend on services, specifically travel....for over a year. That money is beginning to flow in a big way, and that along with a lot of other factors is causing prices to soar in certain sectors. We're not seeing a lot of price sensitivity though....people are willing to pay the higher prices right now. I was just at my butcher's shop and he told me he had to raise his price on beef tenderloin from 28.99 a pound to 34.99...so quite a difference. He's still seeing people buy plenty of beef tenderloin.

I will tell you that we just booked a trip to Puerto Rico. We're going in November, which is shoulder season. The last time we went was January of 2019, which is considered high season. However, not only did we snag an amazing deal at a 5 star resort with a AAA discount that gave us 24% off. We went with their lowest price room for the trip....a garden view which is actually quite nice. Was $679, got it for $515. And then the flights...we flew business call in 2019 and paid $2,397. For this trip, also business....round trip was $1650. So we feel like we got a pretty sweet deal. The thing with travel right now, and likely for the next six months to a year....is you need to pack your patience. Staffing isn't up to speed yet and so you may need to wait longer for service. At this point...I'll serve myself, I just want to go somewhere nice and chill out. .

A lot of this inflation won’t stick unless we get higher wages. The stimulus will work its way through and then folks won’t have the money to spend. They’ll have to take on more debt.

 

[dvcgirl67]

A lot of this inflation won’t stick unless we get higher wages. The stimulus will work its way through and then folks won’t have the money to spend. They’ll have to take on more debt.

Well, banks are still holding onto record deposits...from stimulus checks, but also companies that rushed to the Fed window and borrowed an unprecedented amount of money. There's a story in the WSJ today about banks asking companies to stop depositing money....all of the cash is affecting their profit margins. And banks, by and large...are being very strict with lending....they're not underwriting a lot of loans right now. It seems like everyone, people, companies....etc, want to keep a bit of powder dry after going through this pandemic. It'll take some time for flows to get back to something resembling 2019. Companies aren't making big investments yet...and so we'll have to wait and see I suppose.

 

[aprilgail]

I guess if the avg wage is 3x there than what it is here, then maybe thats acceptable. I just cannot imagine paying that much to rent something. But here a decent paying job is 15ish an hour. Corrections officers for instance, start off at 15.30/hr. But this state only requires a GED and basically a breathing body. And that is one of the better paying jobs, tho its still not nearly enough for what they deal with every day. What the equivalent of a corrections officer is at the max security mental health hospital is in the state, those positions make 16/hr. and they are pretty regularly getting the crap beat out of them, like orbital bone fractures, type beating. Not nearly enough pay for that either. But still, here it's a good paying job, and enough to pay rent, utilities, gas, food etc.

Wow-here it’s like $27.00 an hour to sweep garbage up in trains and all you need is high school diploma. .

 

[Mackenzie Click-Mickelson]

Well I'll be reviving this thread...as the heat has started in my area (after an unseasonably cool now we've flipped the switch to heat ugh) so has calls for a/c units (2 neighbors just this week have had a/c companies out). And another shortage uncovered at least paid attention to.

A/c units--from chips to circuit boards to condensers to other parts. Some causing months delays in getting the parts for the repair and installation companies, increase of costs can be 30% sometimes more.

Oh joy *sigh*

 

[aprilgail]

Well I'll be reviving this thread...as the heat has started in my area (after an unseasonably cool now we've flipped the switch to heat ugh) so has calls for a/c units (2 neighbors just this week have had a/c companies out). And another shortage uncovered at least paid attention to.

A/c units--from chips to circuit boards to condensers to other parts. Some causing months delays in getting the parts for the repair and installation companies, increase of costs can be 30% sometimes more.

Oh joy *sigh*

My neighbors fridge died and they have to wait 8 weeks to get one that is the right size for the space they need- everything out of stock!

 

[Mackenzie Click-Mickelson]

My neighbors fridge died and they have to wait 8 weeks to get one that is the right size for the space they need- everything out of stock!

My aunt ordered a fridge last August and it arrived 6 months later!! I think they may have more fridges made now after catching up since late summer last year but everyone has bought them so now they are back to supply/demand issues and parts issues. I sure hope your neighbor's fridge gets here quicker than 8 weeks.

I went to Walmart last week to look at weighted blankets, sheet sets, bed in a bag and even those were virtually gone (although the most basic sheets were still plentiful). A woman was looking for mattress toppers and they had 3 in stock with only 1 being the full size she was looking for. The whole aisle was quite bare.

My mom said the same thing when she went to JCP and Khol's that bedding was way down on inventory. She said DSW (which I was there a few weeks ago and they weren't too too bad on inventory then) and JCP were also having issues getting shoes into the store although her company she works for wasn't as impacted. It's just nuts!

 

[dez1978]

Wow-here it’s like $27.00 an hour to sweep garbage up in trains and all you need is high school diploma. .

Wow! Thats crazy. I'd be afraid to ask what the cost is to rent an apt is where you live.

 

[aprilgail]

Wow! Thats crazy. I'd be afraid to ask what the cost is to rent an apt is where you live.

Various ranges- my friend just rented an apartment in a new building that went up and he is paying 2750 for a one bedroom- it is a nice place. You can get a one bedroom apartment like on the back of someone's house for around 1800 though.

 

[dez1978]

Various ranges- my friend just rented an apartment in a new building that went up and he is paying 2750 for a one bedroom- it is a nice place. You can get a one bedroom apartment like on the back of someone's house for around 1800 though.

holy crap. I can rent a whole house for less than 1800 here. A nice one.

 

[NYCgrrl]

I just spent close to $400.00 on groceries for two people. In January much of the same items cost $320.00.
Inquired about getting a passport for DGD via a third party since I despise waiting. Quoted a price of $150.00 to $ 325.00; I’ll wait.

Prices are quite weird right now.

 

[JimMIA]

Inquired about getting a passport for DGD via a third party since I despise waiting. Quoted a price of $150.00 to $ 325.00; I’ll wait.

When we got passports, the entire process was pretty quick, so I think you made a wise decision. Global Entry took forever (10 months), but just a passport was quick and easy.

 

[Mackenzie Click-Mickelson]

I just spent close to $400.00 on groceries for two people. In January much of the same items cost $320.00.
Inquired about getting a passport for DGD via a third party since I despise waiting. Quoted a price of $150.00 to $ 325.00; I’ll wait.

Prices are quite weird right now.

My husband paid for expedited service for his passport renewal. It's been a month at this point since they've received it and it's "Processing" at this time. What would that 3rd party service do for the extra charge? Is it them doing expedited or something?

 

[sam_gordon]

Our passports expire at the end of this year, so I just looked up cost/timeframe.

Just the book would be $145pp ($110 for application and $35 "acceptance" fee).

The "processing" time however... "Door to Door" for "Routine" applications is showing as 18 weeks (12 weeks processing and 6 weeks mailing).

We're debating waiting until our youngest turns 16 (end of Feb), but we're considering going on a cruise the middle of July (next year). That should fall into the 18 weeks, but man, that's a long time.