Archive for the ‘inflation’ Category

Inflation: More about the lumber price shock…

July 20, 2021

Yesterday, we pointed out that In June, year-over-year inflation reached a 13-year high.

Today, let’s drill down on my personal inflation benchmark: lumber prices:

Loyal readers might remember that a couple of weeks ago, I whined about sky-rocketed lumber prices.

See Ouch: I just paid $3,700 for $1,200 of lumber …

Since then, lumber prices have “corrected” somewhat … down about 60% from the peak … but still 50% higher than a year ago.

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That doesn’t lessen the pocketbook sting from my completed project, but it gives me some hope for my next lumber-intensive project: re-planking my retirement home’s dock.

For that project, I’ll be buying lots of #2 prime pressure-treated boards measuring 2 in. x 8 in. x 8 ft.

That’s my personal inflation pain point these days.

Not that long ago, I used to pay about $5 per board.

A couple of weeks ago, Home Depot was charging a whopping $17.98.

Last week the price dropped to $12.99 … a 27% price drop.

This week, the price is down to $10.99 … another 15% price-shaving.

That’s still double what I used to pay … but the price is heading in the right direction!

That is, unless Bidenomics strikes again…

And, as many news sources are reporting, that’s not a far-fetched worry:

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Yipes.

“In June, year-over-year inflation reached a 13-year high.”

July 19, 2021

That’s the mega-takeaway from the most recent gov’t report.
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June’s 5.4% follows May’s 5% and April’s 4% 

Press Secretary Psaki says, based on the administration’s arithmetic, we shouldn’t worry. She noted that  she and Biden — the ever sharp shoppers — paid 16 cents less for their July 4th BBQs.

For the rest of us, in real terms, the inflation shock means that our paychecks are in only buying about 95% of what they did a year ago … and, excluding our new contributions and  stock market gains, the “real” value of our IRA is shrinking at a 5.4% annual rate.

Ouch…

Joe says: “What inflation?”

June 14, 2021

The government reported CPI went up 5% in May.

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Source: WaPo

Though Biden and his team of free-spenders are sanguine, ordinary folks are starting to notice.

Let’s look at a couple of benchmarks…

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Gasoline

Key consumer benchmark: gasoline prices … they’re up a whopping 47% in the past year.

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Housing

Zillow says that the price of a typical mid-tier existing home is up 13.2% over the past year … and is projected to go up another 14% this year … for a combined impact of almost 30%.

The price of new homes is skyrocketing …  in part, because of the almost quadrupling of lumber prices.

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According to CNBC the surge in lumber prices in the past year has added $35,872 to the price of an average new single-family home … which translates to about $15 per square foot … just for lumber!

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Food

The measured CPI for food rose “only” 2.2% in the government calculation.

Many (most?) consumers scoff at the 2.2% number … and benchmark their high volume staples (e.g milk, diapers) or personal favorites.

For example, a Homa family benchmark is the price of an Arby roast beef sandwich.

Not that long ago, Arby would regularly promote the sandwiches at 5 for $5.

Earlier this year, Arby’s went to 5 for $10.

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Now, my price scouts report that an Arby’s roast beef sandwich regularly costs $4 …and the special is 2 for $6  … at $3 a sandwich, that’s up 50% from earlier this year, and triple the price from the good old days.

Ouch.

This inflation thing is getting personal….