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My personal inflation rate (variable basket of goods: grocery, gas, etc.) is at 14.2% yoy.
Pro
That’s interesting and sounds more like it… what else is in your personal basked of goods?
My grocery costs have jumped from ~$200 a week to ~$500 a week — this does not include alcohol. We have 5 kids, family of 7 and I plan meals to make sure we don’t over or under buy. (Chicago)
We shop mostly at Mariano’s and Costco. I love Trader Joe’s but they don’t have the sizes I need for such a big family.
Besides gas food has definitely been hit the hardest it seems. Seems like grocery bill is 20%+ higher than even a year ago
It’s clearly more than 7%. The problem is that the basket of goods shifted to include much more of the low inflation items so the CPI (which is indexed on the pre-Covid basket of goods) is completely inaccurate. For example, it doesn’t matter that hotel and cruise prices are down because those are being bought at much lower rates. However, those are being factored into inflation calculations at an overweighted rate. I don’t think the overall rate is 50%, but certainly in the 10-30% range.
Yes, meant low
Chief
Are people on this app really noticing inflation? All the stuff I spend money on is about the same as it always has been.
Where are the everyday price increase that you all are seeing?
Pro
Examples? My grocery bill hasn’t moved much at all
And service is way down - wait times are ridiculous
High cost of living cities have been hit the worst with inflation 🫠
Still being hit with Covid surcharges in chicago
Pro
Real talk - how much has comp gone up at Bain over this past year? If y’all followed BCGs lead over the past few years, then it certainly was way more than 7%.
Yes, everything has a labor cost, but that doesn’t mean labor drives inflation?? Average wages have been stagnant for a long time. Supply shocks from COVID (and now war) are presumably much bigger (and more proximate) causes. Wage increase is a newer phenomenon (last year), it wouldn’t translate to price that quickly
Pro
One example is lime. I eat a lot of lime, and it went from 20 cent each to now 69 cents lol
Other than that, many other things double in price and net gain is like at least 30-50%
Chief
I'm our Manager equivalent. Base is 210.
Definitely agree with your point that people are being negatively affected. Even some higher earners especially those with families in more expensive cities
The 7% is an average number across all sort of spending across all sort of people. Most people biggest spending item is their mortgage or car payments; those haven’t changed at all unless they recently bought a new house or car. It’s a weighted average.
So yes, your non financial payments have moved a lot but the chance is what has moved is not more than 20% of your spending.
My prime example is a Chobani yogurt drink that my 4 yr old son is obsessed with. For the longest time they were $1.50 each. Now they are $1.79 (~+19%). For whatever reason I have always fixated on this one item but I spend probably 30% more a week on groceries. My promotion has quickly eroded.
I realize this is purely anecdotal, but what are you seeing that is more expensive? Obviously homes and cars but I’ve noticed a very minor increase in groceries and few other items. I work from home and we butcher our own meat so our grocery bill and gas bill have not seen the large increases from buying meat and commuting much…so I realize my experiences are different. What other things are increasing in price substantially?
My energy costs have been hiked twice in the past year, my grocery bill is around 30% higher, ammo is about twice as much, every streaming or subscription service I’m part of has raised costs, eating out has a “service fee” everywhere I go now then I’m supposed to tip on top, coffee I order is up 20% compared to the invoice I just found from last year, batteries I use in my smart home devices are up 45%. Just talking out loud naming things I’ve noticed recently
I think what you “feel” inflation is largely depends on your geo. I live in Atlanta and I don’t feel it much outside of gas and rent prices. But I’m sure places like NYC are vastly different. So, overall, I think the numbers are probably correct.
I live in Atlanta. You aren’t paying attention or haven’t tracked your grocery spending if you’re making that claim. I’ve bought similar things for the past 3-4 yrs and the last yr things have gone up by 15-35% with my normal groceries.
Rising Star
The crazy thing is I live in NYC and my grocery bill seemed to peak in like mid-January, but prices have been slowly creeping downward the past couple months back to / below 2021 levels
Producer inflation was still trending upward at around 10% last I looked. Consumer inflation generally lags behind, but eventually catches up to producer levels. So I imagine inflation as a whole is at or above 10% currently and likely to climb higher now that the Fed is raising rates. Could be a recessionary period inbound. Everything happens in cycles… this too shall pass.
Thank goodness you work at MBB where comp increases have almost always outpaced inflation historically :)
But yes inflation is real and understated in official numbers
7.9% is the US average. Different cities had difference inflation rates. Atlanta for example was 10%. Go Google it.
It’s concerning that so many people believe only 2-3 things (that impact them personally) go into the full inflation number
Pro
Like limes
Real talk, how do you work at Bain and not get weighted averages or the difference between core cpi and cpi
Here’s your answer: https://www.bls.gov/news.release/cpi.nr0.htm