“Prices will not come back down,” she said. “They never do.”

[NorthernHawkeye]

Laura Veldkamp, a finance and economic professor at Columbia University, suggested people try renegotiating salaries with their employers. “Prices will not come back down,” she said. “They never do.” Dipping into savings to cope with rising prices is not a sustainable long-term solution, she added.

Personal savings are being depleted as Americans cope with red-hot inflation. People are being forced to make 'difficult choices'

The personal savings rate has hit the the lowest level since September 2008.

www.marketwatch.com

 

[Huey Grey]

OP finally gets unions.

 

[Formerly Rockymtnole]

For some things they will, but I can’t see most of our day-to-day purchases ever getting cheaper.

I don’t know how all these people who have quit in the Great Resignation are going to make it. Unless it’s a matter of a lot of people quitting one of two jobs and making it on a single job. The only explanation I can think of.

 

[The Tradition]

NPR's Marketplace had a lead story tonight that said the same thing.

But today inflation is catching up with crazy wage increases instead of the other way around.

 

[bhawk24bob]

It won't, because we have the worst consumers on earth. We are conditioned to it and will put it on credit if we can't afford something

 

[DogBoyRy]

OP finally gets unions.

I think i’d rather bargain my own worth vs being included in a group of slugs.

 

[alaskanseminole]

It won't, because we have the worst consumers on earth. We are conditioned to it and will put it on credit if we can't afford something

This. People spend, spend spend like it's nothing. Took Mrs. Alaska to the La Cantera Resort for our Anniversary this weekend. Went to one of the nicest restaurants in San Antonio for dinner--you know, a splurge due to the occasion. Family next to us made it look like an average Sunday night for them--kids eating $60 Filet Mignons...just pick'n at it all dinner long, then the family watching the plates get thrown out.

Our dinner was $202 for the two of us, I'm assuming their family of 4 was $400. 8-year-olds want chicken nuggets.

 

[Bank of Hawk]

While I agree with everyone about this… just thinking about the ways prices could go down, one way I see that is China currency manipulation; they want their pile of US treasuries to remain valuable and if inflation continues at its hot pace, the true value of a dollar goes down and that isn’t a positive thing for US debt holders like China.

 

[RileyHawk]

While I agree with everyone about this… just thinking about the ways prices could go down, one way I see that is China currency manipulation; they want their pile of US treasuries to remain valuable and if inflation continues at its hot pace, the true value of a dollar goes down and that isn’t a positive thing for US debt holders like China.

The dollar value is way up making imports and overseas travel relatively inexpensive. Prices will level out, and some will come back down (like gas), when supply meets/exceeds demand. We're already seeing a fast drop in buying things.

 

[SoDakHawk]

Just had this conversation with my wife (no pic). We were discussing some items at the grocery store and she mentioned the price. "Yeah, F that.". We're just making choices not to buy certain things that we feel are ridiculously priced out of whack. Not that we can't afford it, we can, it's just the principle of things. Substitute something else.

She mentioned taking the kids out to eat Friday night, local restaurant that has a Burger Night with 50s style shakes, etc. Nope. I'd rather buy a couple racks of ribs and a case of beer. We were in agreement. We can make better food at home.

Restaurants have to be losing business unless we are the only ones who have just eliminated eating out.

 

[NorthernHawkeye]

Just had this conversation with my wife (no pic). We were discussing some items at the grocery store and she mentioned the price. "Yeah, F that.". We're just making choices not to buy certain things that we feel are ridiculously priced out of whack. Not that we can't afford it, we can, it's just the principle of things. Substitute something else.

She mentioned taking the kids out to eat Friday night, local restaurant that has a Burger Night with 50s style shakes, etc. Nope. I'd rather buy a couple racks of ribs and a case of beer. We were in agreement. We can make better food at home.

Restaurants have to be losing business unless we are the only ones who have just eliminated eating out.

Sounds just like my family.

 

[BrunoMars420]

Obviously OP hasn’t been paying attention to the markets!

 

[RileyHawk]

Just had this conversation with my wife (no pic). We were discussing some items at the grocery store and she mentioned the price. "Yeah, F that.". We're just making choices not to buy certain things that we feel are ridiculously priced out of whack. Not that we can't afford it, we can, it's just the principle of things. Substitute something else.

She mentioned taking the kids out to eat Friday night, local restaurant that has a Burger Night with 50s style shakes, etc. Nope. I'd rather buy a couple racks of ribs and a case of beer. We were in agreement. We can make better food at home.

Restaurants have to be losing business unless we are the only ones who have just eliminated eating out.

My experience is that restaurants haven't had the big price increases that you see in some grocery items. That said, there are still relative bargains out there. We're all spoiled in having cheap food available all the time. Now it requires more shopping and selection.

 

[The Tradition]

Just had this conversation with my wife (no pic). We were discussing some items at the grocery store and she mentioned the price. "Yeah, F that.". We're just making choices not to buy certain things that we feel are ridiculously priced out of whack. Not that we can't afford it, we can, it's just the principle of things. Substitute something else.

She mentioned taking the kids out to eat Friday night, local restaurant that has a Burger Night with 50s style shakes, etc. Nope. I'd rather buy a couple racks of ribs and a case of beer. We were in agreement. We can make better food at home.

Restaurants have to be losing business unless we are the only ones who have just eliminated eating out.

Restaurants are not hurting for business in my experience.

 

[Bank of Hawk]

yes just checked USD charts and it’s up 10-15% against most foreign currencies over the past year. Although, it seems counter intuitive that the value of a dollar would rise the same time inflation is running rampant.

 

[BrunoMars420]

Our Sam’s club trips have been getting stupid lately. Time to not buy in bulk at the moment.

 

[bhawk24bob]

Our Sam’s club trips have been getting stupid lately. Time to not buy in bulk at the moment.

Eh it makes even more sense to buy in bulk right now. A small chest freezer and a food saver will set you back less than $300 and it'll pay dividends over time

 

[joelbc1]

Restaurants are not hurting for business in my experience.

I need to start eating where you eat. Service is something a customer can not complain about because it is almost non-existent any more. Staffs and service are cut short. Eating out is a lot of hassle nowadays.

 

[Formerly Rockymtnole]

It won't, because we have the worst consumers on earth. We are conditioned to it and will put it on credit if we can't afford something

I think that makes them the best consumers on earth!

 

[SoDakHawk]

Yep. Service is hit and miss and prices have shot up at all the local places. It's just not worth it.

 

[RileyHawk]

Yep. Service is hit and miss and prices have shot up at all the local places. It's just not worth it.

Lol - hardly noticeable in my experience.

 

[Formerly Rockymtnole]

Yep. Service is hit and miss and prices have shot up at all the local places. It's just not worth it.

We get behind on planning meals, and coupled with all of us going every which way schedule-wise, we eat out or get takeout more than we should. It definitely adds up quicker than it used to.

 

[Mike Zierath]

This. People spend, spend spend like it's nothing. Took Mrs. Alaska to the La Cantera Resort for our Anniversary this weekend. Went to one of the nicest restaurants in San Antonio for dinner--you know, a splurge due to the occasion. Family next to us made it look like an average Sunday night for them--kids eating $60 Filet Mignons...just pick'n at it all dinner long, then get thrown out.

Our dinner was $202 for the two of us, I'm assuming their family of 4 was $400. 8-year-olds want chicken nuggets.

Oh, you were at Ruth’s Chris!!

 

[dgordo]

Restaurants are still packed

airplanes are still packed

hotels are still packed

concerts and sports are still packed

I’m sure people have cut back on some stuff but it doesn’t seem like it.

 

[Tenacious E]

Laura Veldkamp, a finance and economic professor at Columbia University, suggested people try renegotiating salaries with their employers. “Prices will not come back down,” she said. “They never do.” Dipping into savings to cope with rising prices is not a sustainable long-term solution, she added.

Personal savings are being depleted as Americans cope with red-hot inflation. People are being forced to make 'difficult choices'

The personal savings rate has hit the the lowest level since September 2008.

www.marketwatch.com

I don’t think this is true where markets are competitive.

 

[Tenacious E]

Our Sam’s club trips have been getting stupid lately. Time to not buy in bulk at the moment.

At the moment, Sam’s gets more of our biz because it is so much cheaper than other places. $5 for like a 20 pack of thighs, cheaper milk, cheaper beef, cheaper everything. What items do you find not worth it?

 

[Tenacious E]

Eh it makes even more sense to buy in bulk right now. A small chest freezer and a food saver will set you back less than $300 and it'll pay dividends over time

Exactly

 

[bdg8]

At the moment, Sam’s gets more of our biz because it is so much cheaper than other places. $5 for like a 20 pack of thighs, cheaper milk, cheaper beef, cheaper everything. What items do you find not worth it?

Depends on how fast you go through items. I am guessing if you have a family you would go through the items quickly

but some people right now would prefer to buy less and pay more for certain items in a smaller pack to keep some money free for other things

also if they don’t go through the items that quickly, like on the meat items , they are buying bulk at the peak of high prices. Meat is an item that will go down in price if demand drops

but like the point of the thread said, most of these price increases won’t go down if and when cost of goods go down. Only if demand drops enough where they have to.

 

[Tenacious E]

Depends on how fast you go through items. I am guessing if you have a family you would go through the items quickly

but some people right now would prefer to buy less and pay more for certain items in a smaller pack to keep some money free for other things

also if they don’t go through the items that quickly, like on the meat items , they are buying bulk at the peak of high prices. Meat is an item that will go down in price if demand drops

but like the point of the thread said, most of these price increases won’t go down if and when cost of goods go down. Only if demand drops enough where they have to.

Sam’s meat is WAY cheaper than hy-vee. Hasn’t moved much. Use what you make, then throw the rest in the freezer.

 

[Tenacious E]

Depends on how fast you go through items. I am guessing if you have a family you would go through the items quickly

but some people right now would prefer to buy less and pay more for certain items in a smaller pack to keep some money free for other things

also if they don’t go through the items that quickly, like on the meat items , they are buying bulk at the peak of high prices. Meat is an item that will go down in price if demand drops

but like the point of the thread said, most of these price increases won’t go down if and when cost of goods go down. Only if demand drops enough where they have to.

Prices will go down in a competitive market. Which markets are competitive is another matter.

 

[hawkeyetraveler]

yes just checked USD charts and it’s up 10-15% against most foreign currencies over the past year. Although, it seems counter intuitive that the value of a dollar would rise the same time inflation is running rampant.

Inflation is running rampant globally, the US is no exception and many countries have it a bit worse. That, combined with the fact that the dollar is a safe haven in a time of global crisis, means more people are investing in US currency driving up demand and the value of the dollar.

 

[onlyTheObvious]

It won't, because we have the worst consumers on earth. We are conditioned to it and will put it on credit if we can't afford something

That’s why we need free college, free day care, and to forgive some other loans.

you expect me to be responsible ? I need that giant home, new suburban, boat, and still have enough left offer to hit the craft brewery all weekend and post selfies about how fabulous my life is.

 

[bdg8]

Sam’s meat is WAY cheaper than hy-vee. Hasn’t moved much. Use what you make, then throw the rest in the freezer.

I am saying some people who might live paycheck to paycheck might be better served to not tie up money in a larger pack, even if the per unit is cheaper, and keep some cash free. I think many people do not comprehend how difficult it is for the people who don't have a lot of extra money. I mean many people stopped receiving the stimulus money right as prices were taking off

 

[bdg8]

Prices will go down in a competitive market. Which markets are competitive is another matter.

No. As long as the percent of price increase is greater than sales decrease the companies are content.

Look at the beer category. Every year the domestic beer market goes down. So they just increase price to make up for it. It's like they don't even care about the long term health of that category

 

[INXS83]

Restaurants are still packed

airplanes are still packed

hotels are still packed

concerts and sports are still packed

I’m sure people have cut back on some stuff but it doesn’t seem like it.

The credit cards haven't maxed out yet. This fall and winter may be the worst yet for the dining and entertainment industries.

 

[BrunoMars420]

Sam’s meat is WAY cheaper than hy-vee. Hasn’t moved much. Use what you make, then throw the rest in the freezer.

I already have my meat covered for the year #buyfromafarmer. With our girls we get a lot of fruit there for them but with strawberry season upon us and some fruits being cheaper at a fareway then might as well go that route. I do enjoy sams club a lot but Iwe are spending like $75-$100 more a trip it seems like. I’d rather coupon on certain items at a fareway (F hy-vee) and start buying fareway brand items.

 

[Tenacious E]

No. As long as the percent of price increase is greater than sales decrease the companies are content.

Look at the beer category. Every year the domestic beer market goes down. So they just increase price to make up for it. It's like they don't even care about the long term health of that category

That's why I said a competitive market. Also, it may be certain domestic beer companies have a very inelastic demand, and there may be other elasticity factors/parameters. Just depends on the product or good.

Elasticity vs. Inelasticity of Demand: What's the Difference?

Elasticity and Inelasticity of demand are the degrees to which demand changes in response to price changes, income levels, and substitution.

www.investopedia.com

 

[Titanhawk2]

Laura Veldkamp, a finance and economic professor at Columbia University, suggested people try renegotiating salaries with their employers. “Prices will not come back down,” she said. “They never do.” Dipping into savings to cope with rising prices is not a sustainable long-term solution, she added.

Personal savings are being depleted as Americans cope with red-hot inflation. People are being forced to make 'difficult choices'

The personal savings rate has hit the the lowest level since September 2008.

www.marketwatch.com

Obama Reaches Energy Goal: “Gradual Adjustment” of Gas Prices

www.rpc.senate.gov

Gas under Obama 2012 $3.59
Under Trump 2019 close to $2

 

[IsaacHarrison]

if everyone renegotiates their salaries wont that just continue to make inflation worse? Isnt that a big reason what got us here in the first place?

 

[Tenacious E]

I am saying some people who might live paycheck to paycheck might be better served to not tie up money in a larger pack, even if the per unit is cheaper, and keep some cash free. I think many people do not comprehend how difficult it is for the people who don't have a lot of extra money. I mean many people stopped receiving the stimulus money right as prices were taking off

You make a good point with people living paycheck to paycheck. If money is that tight though, bulk chicken thighs cannot be beat. You can literally get a huge pack for like $6, as they are under a dollar a pound. And, they freeze well.