Inflation running hot

7,771 Views | 108 Replies | Last: 2 days ago by MRB10
MemphisAg1
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This producer price inflation is typically an early indicator of coming consumer inflation as producers attempt to pass through higher costs.

Not gonna be helpful for R's in the "affordability" discussion as the midterms approach.
Quote:

Wholesale prices rose at a faster-than-expected pace in January, countering hopes that inflation was easing, the Bureau of Labor Statistics reported Friday.

The core PPI, which excludes volatile food and energy prices, increased a seasonally adjusted 0.8%, more than the 0.6% gain in December and well ahead of the Dow Jones consensus estimate for 0.3%.

https://www.cnbc.com/2026/02/27/ppi-january-2026-.html
whytho987654
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Time for 12 month finance options on groceries
HoustonAggie11
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Inflation down since Trump took office as well as gas prices.
Rapier108
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Electronics are seeing price increases every 2-4 weeks, some as much as 20% each time.

This is all due to the AI insanity.
"If you will not fight for right when you can easily win without blood shed; if you will not fight when your victory is sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a precarious chance of survival. There may even be a worse case. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves." - Sir Winston Churchill
DrEvazanPhD
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Rapier108 said:

Electronics are seeing price increases every 2-4 weeks, some as much as 20% each time.

This is all due to the AI insanity.

RAM in particular
Pizza
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Wait...so if my money is inflating, that means it's getting bigger...and big money is good...right? - democrats
No Spin Ag
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Rapier108 said:

Electronics are seeing price increases every 2-4 weeks, some as much as 20% each time.

This is all due to the AI insanity.


I don't know if the guys have noticed, but razors have gone up by a decent amount just since summer.

Gillette is selling their Fusion blades on Amazon for $36 for 10 cartridges.

I bought them in summer for $33 for 12 cartridges. No, I didn't buy them during Amazon days, it was just, like now, their regular price.

So, paying more for the same thing, but getting less.

Is this tariffs or just inflation or tariff induced inflation?

Either way, it would be nice if things turned around to at least where they were a year ago with prices on all things the average person buys on a regular basis.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
HoustonAggie11
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Wait so the Inflation Reduction Act isn't working?
javajaws
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AG
Rapier108 said:

Electronics are seeing price increases every 2-4 weeks, some as much as 20% each time.

This is all due to the AI insanity.

Why do you think that's due to AI? I think the only things affected by AI are stuff like GPUs and memory.

Most consumer electronics (think tvs, stereo stuff, etc.) are more affected by tariffs than AI.
Teslag
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Rapier108 said:

Electronics are seeing price increases every 2-4 weeks, some as much as 20% each time.

This is all due to the AI insanity.


It's ram pricing, effecting everything that uses it. Even the 32GB of DDR4 I bought for $72 in August is now $300 from same vendor.
Owlagdad
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Mcdonald's coffee went from 19.90 to 22. 50 at Walmart. for 30 ounces. A big jump.
I enjoy it, but can go back to somebody's cheaper Columbian brand and just get used to it. Substitute good.
But for $22 I get 2.5 cups a day for a month, Im still way ahead of the Starbucks or even McDonalds restaurant crowds.
MemphisAg1
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HoustonAggie11 said:

Inflation down since Trump took office as well as gas prices.

That's a nice talking point and all, but if you actually look at the CPI and PPI metrics, inflation is essentially flat since he took office, remaining stubbornly near 3% depending on which data elements you include.

Most consumers regard that as too high and aren't soothed by that talking point. Especially when it surprises to the upside like it did in this PPI print today.

Trump and the R's will be better off communicating what they're doing to try and get inflation down -- and how Dems are obstructing them -- than trying to sell a message that "inflation is ok and you should feel good about it." That message will float like a lead brick.
YouBet
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MemphisAg1 said:

HoustonAggie11 said:

Inflation down since Trump took office as well as gas prices.

That's a nice talking point and all, but if you actually look at the CPI and PPI metrics, inflation is essentially flat since he took office, remaining stubbornly near 3% depending on which data elements you include.

Most consumers regard that as too high and aren't soothed by that talking point. Especially when it surprises to the upside like it did in this PPI print today.

Trump and the R's will be better off communicating what they're doing to try and get inflation down -- and how Dems are obstructing them -- than trying to sell a message that "inflation is ok and you should feel good about it." That message will float like a lead brick.


Consumers regard that as too high because the Fed stubbornly maintains a 2% goal that is likely unrealistic at this point.

The larger problem that continues to get ignored is that inflation stacks. People are pissed because stuff doesn't cost what it did pre-Covid. We've taken double digit percentage cost increases every year for several years now on many things.

We aren't getting back to 2019 pricing. Doesn't matter who is in office.
Rapier108
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javajaws said:

Rapier108 said:

Electronics are seeing price increases every 2-4 weeks, some as much as 20% each time.

This is all due to the AI insanity.

Why do you think that's due to AI? I think the only things affected by AI are stuff like GPUs and memory.

Most consumer electronics (think tvs, stereo stuff, etc.) are more affected by tariffs than AI.

RAM, processors, GPUs, SSDs, hard drives, power supplies, and just chips in general are all affected.

Everything electronic uses one or more of these parts.

Heck, Western Digital is not even accepting new orders until 2027 because their production capacity is maxed out due to AI demands.

I've seen HP raise prices 40% in a month. I've seen a server increase by 50% overnight for no other reason than just because.

The sooner the AI bubble bursts, the better.
"If you will not fight for right when you can easily win without blood shed; if you will not fight when your victory is sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a precarious chance of survival. There may even be a worse case. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves." - Sir Winston Churchill
Rapier108
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YouBet said:

MemphisAg1 said:

HoustonAggie11 said:

Inflation down since Trump took office as well as gas prices.

That's a nice talking point and all, but if you actually look at the CPI and PPI metrics, inflation is essentially flat since he took office, remaining stubbornly near 3% depending on which data elements you include.

Most consumers regard that as too high and aren't soothed by that talking point. Especially when it surprises to the upside like it did in this PPI print today.

Trump and the R's will be better off communicating what they're doing to try and get inflation down -- and how Dems are obstructing them -- than trying to sell a message that "inflation is ok and you should feel good about it." That message will float like a lead brick.


Consumers regard that as too high because the Fed stubbornly maintains a 2% goal that is likely unrealistic at this point.

The larger problem that continues to get ignored is that inflation stacks. People are pissed because stuff doesn't cost what it did pre-Covid. We've taken double digit percentage cost increases every year for several years now on many things.

We aren't getting back to 2019 pricing. Doesn't matter who is in office.

Only way we get back to that pricing level is a severe global depression, which no one wants.
"If you will not fight for right when you can easily win without blood shed; if you will not fight when your victory is sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a precarious chance of survival. There may even be a worse case. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves." - Sir Winston Churchill
MemphisAg1
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YouBet said:


Consumers regard that as too high because the Fed stubbornly maintains a 2% goal that is likely unrealistic at this point.

The larger problem that continues to get ignored is that inflation stacks. People are pissed because stuff doesn't cost what it did pre-Covid. We've taken double digit percentage cost increases every year for several years now on many things.

We aren't getting back to 2019 pricing. Doesn't matter who is in office.

Agree with most of those comments. The one area I view a bit differently is we should still target 2% inflation instead of giving up on it because higher inflation is hideously destructive for most people unless you owe a lot of money and are young, in which case inflation can be your friend.

But I agree that we as a society aren't willing to make the change necessary to support a 2% inflation environment, which would involve cutting spending over time gradually to align with tax revenue and bending our national debt in a downward or flat direction.

Ain't happening because we're too addicted to free stuff from the government, and there are too many politicians who only care about retaining power and will gladly give us the free stuff. We are heading to hell in a hand basket, and higher inflation will be a key feature.
Queso1
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Of course it is. The party demands you ignore what you see and experience. And there will be plenty of sheep to defend because their guy is in office.

But don't worry, the Dow is at 50,000. Not sure if dollars or what, but it's 50,000.

They paid for their wars with your tax dollars and also with your untaxed dollars. Inflation is theft.
Sims
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Fine needle to thread.

I think you have to admit inflation is above target and that it's a by-product of bringing productive industry back to the US and putting Americans, rather than illegal aliens back to to work.

There's pockets of terrible employment trends and great employment trends. Gaslighting around everything is good will get sniffed out.

They intend to run things hot and keep nominal GDP ahead of inflation. If that's a message they can sell - we're seeing inflation because economic growth is red hot, they may have traction.
HoustonAggie11
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MemphisAg1 said:

HoustonAggie11 said:

Inflation down since Trump took office as well as gas prices.

That's a nice talking point and all, but if you actually look at the CPI and PPI metrics, inflation is essentially flat since he took office, remaining stubbornly near 3% depending on which data elements you include.

Most consumers regard that as too high and aren't soothed by that talking point. Especially when it surprises to the upside like it did in this PPI print today.

Trump and the R's will be better off communicating what they're doing to try and get inflation down -- and how Dems are obstructing them -- than trying to sell a message that "inflation is ok and you should feel good about it." That message will float like a lead brick.

I mean its facts was around 3 when took office to 2.4 in Jan.
The Collective
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whytho987654 said:

Time for 12 month finance options on groceries


Buying all things on an Affirm loan.
Owlagdad
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YouBet said:

MemphisAg1 said:

HoustonAggie11 said:

Inflation down since Trump took office as well as gas prices.

That's a nice talking point and all, but if you actually look at the CPI and PPI metrics, inflation is essentially flat since he took office, remaining stubbornly near 3% depending on which data elements you include.

Most consumers regard that as too high and aren't soothed by that talking point. Especially when it surprises to the upside like it did in this PPI print today.

Trump and the R's will be better off communicating what they're doing to try and get inflation down -- and how Dems are obstructing them -- than trying to sell a message that "inflation is ok and you should feel good about it." That message will float like a lead brick.


Consumers regard that as too high because the Fed stubbornly maintains a 2% goal that is likely unrealistic at this point.

The larger problem that continues to get ignored is that inflation stacks. People are pissed because stuff doesn't cost what it did pre-Covid. We've taken double digit percentage cost increases every year for several years now on many things.

We aren't getting back to 2019 pricing. Doesn't matter who is in office.

Amen. One democrat running for office said in his ad, "Its not right that a car costs more than than a house did 40 years ago." My answer to that and those who wish for good ole days, is "yeah, you paid $80 a month for car, but you also made $2.80 an hour.
Covid and this $ 15 an hour broke us. When you have to pay someone $15 an hour to stock, sweep, or check you out at grocery store, the store will jack up their prices.
MagnumLoad
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Simple, people keep on buying. If it is not a necessity and you don't like the price, don't buy. I don't even understand how some of the high priced gas stations stay in business. I drive by them, but I see folks gassing up.
No Spin Ag
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Owlagdad said:

Mcdonald's coffee went from 19.90 to 22. 50 at Walmart. for 30 ounces. A big jump.
I enjoy it, but can go back to somebody's cheaper Columbian brand and just get used to it. Substitute good.
But for $22 I get 2.5 cups a day for a month, Im still way ahead of the Starbucks or even McDonalds restaurant crowds.



I do the same of making at home when possible because it is still less than eating out.

Unfortunately that doesn't mean prices for both haven't gone up and continue to.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
MemphisAg1
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HoustonAggie11 said:

MemphisAg1 said:

HoustonAggie11 said:

Inflation down since Trump took office as well as gas prices.

That's a nice talking point and all, but if you actually look at the CPI and PPI metrics, inflation is essentially flat since he took office, remaining stubbornly near 3% depending on which data elements you include.

Most consumers regard that as too high and aren't soothed by that talking point. Especially when it surprises to the upside like it did in this PPI print today.

Trump and the R's will be better off communicating what they're doing to try and get inflation down -- and how Dems are obstructing them -- than trying to sell a message that "inflation is ok and you should feel good about it." That message will float like a lead brick.

I mean its facts was around 3 when took office to 2.4 in Jan.

When you look at "core" inflation, PCE was 3% in December. PPI just printed much hotter today at 3.6%. When you step back and look at the trend over time it is essentially flat. You could slice it lots of ways to say it's "this" or "that" but the big picture is it hasn't changed materially. Consumers know that.
MemphisAg1
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Sims said:

Fine needle to thread.

I think you have to admit inflation is above target and that it's a by-product of bringing productive industry back to the US and putting Americans, rather than illegal aliens back to to work.

There's pockets of terrible employment trends and great employment trends. Gaslighting around everything is good will get sniffed out.

They intend to run things hot and keep nominal GDP ahead of inflation. If that's a message they can sell - we're seeing inflation because economic growth is red hot, they may have traction.

Agree. The challenge with running things hot to keep GDP ahead of inflation is that wages have to also beat inflation if you want people to feel good about things. It doesn't feel good if GDP is 4%, inflation is 3%, and wages increase 2.5%.

As you noted, there are pockets of extreme differences with some wages increasing 5%+, but others weak, flat, or even declining due to economic pressures. Those are the consumers that won't buy a gaslighting message, and there's a large number of them out there.
1981 Monte Carlo
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DrEvazanPhD said:

Rapier108 said:

Electronics are seeing price increases every 2-4 weeks, some as much as 20% each time.

This is all due to the AI insanity.

RAM in particular

Hah, at first I was like "what does RAM and their faulty truck electronics have to do with this?"
Ducks4brkfast
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The domestic steel mills have been raising prices like clockwork since Liberation Day. For no other reason than they have #zero foreign competition. Absolute windfall for them.


BTKAG97
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I have 50+ years of personal history to know which party is better for me when it comes to affordability.

It's shocking that anyone can believe a Democrat will make life more affordable over a Republican in this day and age. How many blue states do we need to prove this belief false?
BTKAG97
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Ducks4brkfast said:

The domestic steel mills have been raising prices like clockwork since Liberation Day. For no other reason than they have #zero foreign competition. Absolute windfall for them.



The proof that domestic steel mills have been raising prices is a commodities ticker tape which domestic steel mills have zero control over?
Ducks4brkfast
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BTKAG97 said:

Ducks4brkfast said:

The domestic steel mills have been raising prices like clockwork since Liberation Day. For no other reason than they have #zero foreign competition. Absolute windfall for them.



The proof that domestic steel mills have been raising prices is a commodities ticker tape which domestic steel mills have zero control over?

Do yo uunderstand what a windfall is?
Burpelson
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Companies took a huge hit during covid and they are trying to recoop all those losses by price increase for the foreseeable future.
CDUB98
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Trump and the Republicans never stopped the spending spree. Inflation will continue until the spending stops or the country collapses from debt.

We all know which will happen.
Dobro Turtlebane
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BTKAG97 said:

Ducks4brkfast said:

The domestic steel mills have been raising prices like clockwork since Liberation Day. For no other reason than they have #zero foreign competition. Absolute windfall for them.



The proof that domestic steel mills have been raising prices is a commodities ticker tape which domestic steel mills have zero control over?


Do you have any idea what a commodities index is?

Do you believe that oil companies are not impacted by the price of oil in commodities markets?
AlexNguyen
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No Spin Ag said:

Rapier108 said:

Electronics are seeing price increases every 2-4 weeks, some as much as 20% each time.

This is all due to the AI insanity.


I don't know if the guys have noticed, but razors have gone up by a decent amount just since summer.

Gillette is selling their Fusion blades on Amazon for $36 for 10 cartridges.

I bought them in summer for $33 for 12 cartridges. No, I didn't buy them during Amazon days, it was just, like now, their regular price.

So, paying more for the same thing, but getting less.

Is this tariffs or just inflation or tariff induced inflation?

Either way, it would be nice if things turned around to at least where they were a year ago with prices on all things the average person buys on a regular basis.

This is just Gillette profiteering off their popular cartridges. I don't believe their manufacturing costs have increased to the rate that their prices have risen.

You can switch to a traditional safety razor with double edge razor blades very cheaply. I did it two years ago and wish I had known about the option much earlier. A cheapo setup that will last you 2 years is about $25. I bought a nicer stainless steel safety razor for $120, but it lasts a lifetime. Razor blades ($20 for 100 high quality ones) will last 1-2 years depending on how often I swap them out. Soaps or creams range from inexpensive to more costly, but even the expensive ones will last a long time.
Burpelson
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Sinve covid, prices have surged and stayed steady up and up, i think an investigation should go into collusion of these companies just like banks and rating agencies colluded right before 2008 housing collapse.
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