Your Survival Guy is seeing rising prices on stuff we actually use. You need not be confused by some useless and outdated government measurement. You can see it for yourself. Jaewon Kang reports in The Wall Street Journal:
Americans accustomed to years of low inflation are beginning to pay sharply higher prices for goods and services as the economy strains to rev back up and the pandemic wanes.
Price tags on consumer goods from processed meat to dishwashing products have risen by double-digit percentages from a year ago, according to NielsenIQ. Whirlpool Corp. WHR +1.02% freezers and dishwashers and Scotts Miracle-Gro Co. SMG -1.18% lawn and garden products are also getting costlier, the companies say. Some consumers are feeling stretched.
Kaitlyn Vinson, a program manager in Denver, said her recent $275 bill at a Costco Wholesale Corp. COST -0.01% store, which included razors and cotton pads on top of her typical grocery list, was more expensive than usual. Ms. Vinson said she switched from buying fresh to frozen fruit and vegetables because they are less expensive and last longer.
“We’re sacrificing the food that I really like to cook just to be cheaper,” she said.
Costs are rising at every step in the production of many goods. Prices for oil, crops and other commodities have shot up this year. Trucking companies are paying scarce drivers more to take those materials to factories and construction sites. As a result, companies are charging more for foods and consumer products including foil wraps and disposable cups.
Kellogg Co. , maker of Frosted Flakes, Cheez-Its and Pringles, said Thursday that higher costs for ingredients, labor and shipping are pushing it and other food makers to raise prices. “We haven’t seen this type of inflation in many, many years,” Chief Executive Officer Steve Cahillane said.
Investors and economists are watching whether the higher prices drive up broader measures of inflation, which have been muted for years.
Consumer prices jumped 2.6% in the year ended in March, according to the Labor Department, the biggest 12-month increase since August 2018.
As higher costs ripple through supply chains, more companies are concluding that their customers will accept higher prices. “They’ve seen price increases throughout the entire store,” Whirlpool CEO Marc Bitzer said. “I don’t think anybody is surprised right now.”
Warren Buffett, CEO of Berkshire Hathaway Inc., said during the conglomerate’s annual meeting May 1 that the economy is experiencing a substantial run-up in prices. “We’re raising prices, people are raising prices to us, and it’s being accepted,” Mr. Buffett said. “It’s an economy really that’s red hot, and we weren’t expecting it.”
Federal Reserve Chairman Jerome Powell said on April 28 that inflationary pressures resulting from supply-chain problems would likely be temporary and wouldn’t prompt the central bank to change policies aimed to keep borrowing costs down.
Action Line: Save ‘til it hurts and work as long as you possibly can.
Originally posted on Your Survival Guy.