US CPI 7.1% YoY vs 7.3% expected, 0.1% MoM vs 0.3% expected

[jesuslover07]

@jjddww 10%+ food inflation isn't good, but it's the total CPI that is a measure of the cost of living, and if food inflation grew it means other categories slowed by more, in order that the total CPI growth slowed.

(Other categories of things people actually buy, since the CPI is based on actual purchasing patterns. So if people say their groceries are expensive, they'll be correct but it's still cherry-picking, other things the average person spends on are growing in price more slowly)

It's not surprising that some categories still have high inflation, this will continue to be the case even if we keep getting good news on total inflation. I don't think it detracts much from this being good news.

 

[theislandpoet]

@jesuslover07 The double irony of satirising the lack of literacy on a 'finance' sub and them not understanding it is rapidly going from funny to annoying :/

It's still kind of scary how people don't grasp the differentials CPI is based on and what deceleration means.

It seems like most people seem to think "slowing inflation" = "lower prices"

 

[jjddww]

@jesuslover07 Poorer people spend way more as a proportion of their income on food. As such, food inflation can have a drastic affect on their life and personal finances.

Food inflation is one of the worst, if not the worst kind of inflation for people of lower socioeconomic standing. So it makes sense that people (i) notice it, and (ii) complain about it.

 

[jesuslover07]

@jjddww That's fair enough. The CPI weightings are an average over all people, and would be different for the poorest

(Not the low-income Americans are likely to be the ones complaining on the AusFinance sub about their grocery bills, though, with reference to the original comment)

 

[mushroom]

@jjddww The person who’s on this sub 24/7 egging for a recession (which would disproportionately affect poorer people) now suddenly cares about poor people.

 

[jesuslover07]

@mushroom You're getting him confused. TV is alright. He's not D4Z. He's not arcadefiery. His views move with the data, he's not stubborn.

 

[jjddww]

@jesuslover07 Appreciate the kind words.

 

[jjddww]

@mushroom Egging for a recession?

I don't even believe Australia will experience a recession.

You must've mistaken me for someone who isn't wildly bullish on Australia's biggest commodity exports.

I've simply egged on a fall in particular asset valuations. It's already happened for the most part to some of the overvalued tech stocks I've hated. Has happened to real estate at a slower rate than I anticipated.

I get it now.. you're one of the folks on here that think Australia will be a Mad Max type wasteland if a 30% decline in RE values were to ever occur.

 

[jjddww]

@theislandpoet The US CPI data suggests food still went up 0.5% MoM and is up more than 10% over the year.

I know Reddit basement dwelling nèckbèards don't realise this, but the price of food is important to large swathes of the population and a 10% increase in one year (on top of a large increase the prior year) is pretty drastic.

Food inflation probably will ease, but between climate change and the energy crisis, it will hardly be temporary reprieve.

Mocking people for their struggle to deal with rapidly increasing food prices is one of the most AusFin moves I've seen.

Go outside. Touch some grass.

 

[resjudicata]

@jjddww Why touch the grass, when I can smoke it?