They used to account for that by making those hard lines between consumer spending on the daily cost of living, and that on the big items... appliances and what not...
Kind of hard to think about the need to include a microwave in that group... when it's less than $100 ? It's very simply true, too, that the last computer I bought, a laptop, no less... cost only 20% of what my first, screaming fast 286 system cost... and it has outlived it by a wide margin already...
Food costs increasing is not unexpected, given the nature of the current cycle, and that is not bad news for the U.S., either, given we produce a lot of food... and it means our trade issues are likely to balance out a bit more... and, that really is part and parcel of the same trend in the changing value in "commodities" that is also what means that gold and silver are likely to be increasing in price ?
But, a lot of the pricing issues I've seen in food, thus far, appear they are "anticipatory"... and when the grocers DO raise prices... consumers are finding alternatives... and the pricing doesn't stick. Much the same experience as Bank of America had in trying to raise fees on consumer banking services. It's just not going to fly, in the current economy.
And, again, I'm NOT saying that there isn't going to be inflation... but, it is clearly true that we're not having the sort of out of control hyper inflation that some have predicted... at least, not yet...
It is also true, generally, that having 3% inflation now... is probably a whole lot better for the economy than having a negative inflation rate like we did in 2008/2009... and, while that period was a great buying opportunity in mining shares... I'm not hoping we go back to deflation...
And then... 3% inflation paired with unemployment that is way too high, and a growth rate that isn't any larger than the inflation rate... means all you're doing is shifting things around between accounts, through inflation, not making any real economic progress... It means your policy has you stealing from those living on a fixed income, and transferring the value in their $ to others... in a way that isn't helping in solving problems...
And a 4% inflation rate being paired with a 3% growth rate... really does mean you're still moving backwards ?
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