This is going to be a short post, but I feel compelled to write something in the wake of the economic numbers released this morning.
As you probably know, the Consumer Price Index rose 6.2 percent in October from a year ago, its fastest increase since 1990.
Prices of clothes, lawn mowers, and car parts surged.
Gasoline prices were 49.6 percent higher in October than a year earlier, and fuel oil, which is used for industrial and domestic heating, was up by 59 percent. Food prices, which have been affected by supply chain issues, also continued their ascent, climbing 5.3 percent since last year.
According to the Bureau of Labor Statistics, the following products and services saw prices increase in October from the prior month:
Bedroom furniture: up 1.3 percent
Outdoor equipment and supplies: up 5.1 percent
Women’s suits: up 2.4 percent
Car parts: up 1.4 percent
Gardening and lawn care services: up 1.1 percent
Legal services: up 1.8 percent
Postage and delivery services: up 4.6 percent
Ditto for rent prices.
At the same time, American households are carrying record amounts of debt as home and auto prices surge, Covid infections continue to fall and people get out their credit cards again. Between July and September, U.S. household debt climbed to a new record of $15.24 trillion.
One more thing: online spending this holiday season is set to hit a record $143.7 billion.
Can you tell me what’s wrong with this picture?
Update: Real average hourly earnings when accounting for inflation, actually decreased 0.5% for the month of October.
Frugal Tip: Christmas is not an excuse to go into debt. Start making some homemade gifts!
One thought on “Shit is About to Hit the Fan”
Yikes. Preach. Amen.