Posted on 11/14/2021 6:57:57 PM PST by elpadre
The US Consumer Inflation Report for October was horrible, showing a 12% annualized rate of price change. But it’s even worse than it looks. The shelter component of the index lags the more reliable private gauges of rent inflation. That means worse is to come.
Three US companies publish national rent indexes – CoreLogic, Zillow and Apartmentlist.com – and their readings of year-on-year rent inflation range from 9% to 16%. But the US Bureau of Labor Statistics reports a year-on-year rise in the rents of just 3.4%. Shelter represents a third of household expenditures according to the Consumer Price Index.
Before the COVID-19 pandemic, the private indices and the government measure of rent inflation moved in lockstep, albeit with lags in the latter reflecting the fact that not everyone’s lease expired at the same time. Given past lags, the rent increases should have shown up in CPI by now. So I really can’t explain the discrepancy.
Led by used vehicle prices, durable goods prices rose 12% over the twelve months through October, according to the official data. That can be blamed on the chip shortage, which constrained auto production and left consumers and car dealers in bidding wars for everything on four wheels. But the price of nondurable goods also jumped 10% over the past year. That’s simple demand-pull inflation: the combination of a $6 trillion giveaway to US consumers and enhanced jobless benefits that kept 2 million Americans out of the workforce left too much money to chase too few goods.(graphs at link)
(Excerpt) Read more at asiatimes.com ...
In addition, many landlords were prohibited from enforcing rent, and possibly may have no effective way to get the back rent from people, so they’re ramping up to stay afloat.
Pretty much everyone has their own individual inflation[/deflation] rate, based on their current and likely near term financial situation.
One number certainly doesn’t cover it.
Especially a number coming from the gooberment.
America needs 2022 to have a deflation equivalent to this year’s inflation.
It’s almost as if letting millions of illegals stream over the border effects the housing supply and cost for American’s.
There was deflation during the Great Depression, it was very unpleasant.
Stephanie Antoinette Ruhle already told us (eyes rolling upward) we saved a fortune during lockdowns and now are lying on pies of pandemic cash we can spend like she does.
In a way it’s like that Commie billboard showing happy suburban family in car going past long line of poor people below.
https://rarehistoricalphotos.com/there-no-way-like-american-way-1937/
You will own nothing, and you will like it.
The rent is too damn high!
Back prior to about 1860, in the American South, there were a group of people who had housing provided to them, and had food provided to them. They didn’t own anything at all. Not even their own bodies. I’m not sure they liked it.
But Karl Schwab is taking us back to that situation, and he says it will be better next time. We’re gonna love it.
So is Inflation.
Over two years, I like some deflation to zer0 out the Inflation.
the Emergency Rental Assistance program makes funding available to assist households that are unable to pay rent or utilities. Two separate programs have been established: ERA1 provides up to $25 billion under the Consolidated Appropriations Act, 2021, which was enacted on December 27, 2020, and ERA2 provides up to $21.55 billion under the American Rescue Plan Act of 2021 - https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/emergency-rental-assistance-program
AUG 09, 2021: As you may know, the CDC issued a new eviction moratorium to temporarily halt evictions in counties where COVID-19 is spreading rapidly. But many landlords still do not know that they can apply to a federal program supporting landlords and renters during this difficult time. The federal emergency rental assistance program can help you recover lost rental income. - https://www.consumerfinance.gov/about-us/blog/four-reasons-landlords-should-take-advantage-federal-rental-assistance/
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Everyone is being gaslighted by this administration with the help of the media who are their partners in crime.
Indeed.
I wonder what percent of that country had ‘normalcy bias’ that nothing bad.....well, not too bad....okay, nothing terribly bad.....would ever happen, there.
Good luck with that. At least the first half of 2022 will be every bit as bad as 2021. It may flatten out a bit in the back half of ‘22 but by then we’ll have seen well over 10% inflation - obviously some sectors harder hit than others. Deflation, unlikely until there is an increase in supply or decrease in demand.
When America was the world creditor nation in the 70s, we experienced serious inflation. Interest rates soon rose to sky high levels to control it. So at least old people got decent CD interest rates.
Today, inflation is running rampant, but our government is up to it’s eyeballs in 30 trillion in debt they’ll admit to.
This means interest rates cannot explode without the nation defaulting soon after.
we are about to be treated to high inflation, but no way to earn high interest. Hard times are coming.
From what I have seen in grocery prices inflation is more like 10% a month.
We bought an 18-year-old travel trailer for $10,000 two years ago. We could probably sell it for $15,000 now. I’m not complaining, but that’s just strange.
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