Secular inflation is here

Don’t be defensive. Just count and see how long CPI stays above 2%.
How to tell someone has grown up? Willing to admit wrong. What if he/she always doesn’t? Peter Pan :wink:

I don’t know who sets that definition of yours. I don’t know any serious economists call this short inflation spike “secular”.

What you call it doesn’t matter. You can call it “super scary inflation” if you want. What people care about is whether it is sticky, long term and caused by structural reasons. You know, the definition I gave you above.

I give you a definition and you don’t like. Can only agree to disagree :wink:

Gas is pretty much flat now, after a 65% spike in June.

So much secular inflation.

More complete.

Try to find those prices in California. Even Nevada is still $4.35

Premium gasoline 93 octane is ~$3 in Austin. ~$2.5 for regular 87 octane.

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Price is lower than before Russia-Urkaine war. You have insisted that the war leads to gasoline price to shoot up. What gives?

Did you not notice gas prices shot up from February to June?

:thinking:

War hasn’t ended yet prices have came down. So your reasoning doesn’t hold water.

Because gas prices has only one single driver?

Did other oil producing countries increase production? Did certain big economies get into trouble, destroying its oil demand because its leader is a stupid pig head?

:thinking:

Wage inflation is more important than oil prices. Oil is a much smaller part of our economy than the 70s. With 3.7% unemployment wages are still going up. Powell wants to raise unemployment to 5%.
Only then will wages and inflation moderate. If he succeeds the Democrats loose in 2024. Biden is caught between a rock and a hard place. Powell may not succeed because people have are still getting lots of free money and more importantly like the roaring 20s people want to let loose,party and spend money. They are sick and tried of Covid lockdowns and austerity. Even in China. Lockdowns masks forced business closures quarantines are bullshit and every one knows it.

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Yup, wages are the dominant economic input that determines inflation. It’s why we didn’t see inflation until everyone started paying $15+ and even $20+ to start.

The other issue is if raising rates cause job and economic hardship, then congress will just pass stimulus packages to give people free money. We’ve already seen consumers are blowing through savings and adding CC debt at record rates. The spending is increasing not slowing down. That’s not a sustainable trend, so when consumers pullback spending the economy will crash hard.

California has caused greater inflation than anywhere with its plan to raise minimum wage every year . Wages in Tahoe have tripled in the 9 years I have lived here. It has gotten insane. I used to have a plow service for my apartments. $1000/year. Now $4200.
Plumber are up to $200/hr. Maids are up to $35/hr.
Great for landlords. Rents just keep going up.

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Are you saying the war didn’t drive price up?

Gas is $3.89 in Stockton. $3.75 in Folsom. Cheaper than even Nevada. Finally the drop in crude prices is filtering down to California

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Buy a Rivian and you don’t have to worry about gas prices no more.

:rofl:

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Sure…just 19 hours to fuel up.

I think the new plug in $40k Prius Prime plugin is a much better deal. AWD 40 miles on a charge. 200hp. 0-60 in 7 seconds. Lithium battery. And much better looking than the old Prius. 57mpg and no range anxiety … probably will have huge dealer markups. Rivian is strictly a status symbol. My neighbor on my farm bought a $160k plaid Tesla x a year ago. Now worth only $120k… wants to sell it. Transactions are drying up in her RE brokerage. The biggest cost of a car is depreciation. She didn’t like my $100k offer.
Interestingly she said with the X her electricity bill went up $300/m… charging at home only. Home office. But drives a lot.
PGE is expensive even with solar. Drives 4000 miles a month but gas won’t be that much more expensive.

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