We are reading a lot about inflation. After 2 years of various Corona and other viruses, millions of Americans and companies are spending, shopping and expanding again. Ships are still lined up in the Pacific Ocean off of the coast of California, to unload merchandise that American companies have ordered. Now it seems to be popular to gripe about rising prices. Rising prices in this case is a reflection that the economy is buzzing again! Our thanks to the many papers and writers who shared these images with us seen around on the news and internet.
Sometimes a picture is worth a thousand words. Lets just look at some of the images that help define what is going on. Below, people are buying more meat, egg, fish, poultry than ever! This sounds like a positive thing.
How about energy? Well, people are moving around more, driving, flying, going to events, going to business meetings. I would be more concerned about our economy if people were not moving around!
Consider what is going on in China. Major cities completely shut down, no traffic on the streets, people are shut down in their homes and apartments with permission to get out only for food or emergencies. This to me looks like a positive...our streets in the USA are bustling with traffic and business is coming back in force! Consider that hotels, airlines and car prices have gone up. Homes at record highs, energy and used vehicle prices up. Rising rents, low inventories of houses available for sale, multifamily and apartments going up. First time house buyers are getting a double whammy, rising prices and rising interest rates. But all of this suggests that consumers, and businesses are spending more money. Think about it. After two years of people holding back, they are back out there, millions of people are spending, some even going out to dinner and slowing expanding their activities.
Inflation chart, suggesting what is driving inflation. What is it. Business, consumers are spending money again!
Consumer prices up 8.5% in 2022 through March, a huge inflation rate increase. Highest since 1981.
Source of these images, internet graphic about inflation in the public domain.
But there is a different point of view to consider. President Biden hinted at it in a recent statement. But others are also seeing some indications Gasoline prices caused about half of March's price rise, and some think that the world may have over-reacted to Russia's invasion of Ukraine. Russian oil is still flowing, and many third world nations are buying it. Biden is releasing "million-barrel-a-day" oil from the Strategic Petroleum Reserve. Gas at the pump actually has declined across America in recent days. The gas station near our home is advertising $3.95 per gallon gas, as of yesturday. (Down from $4.30 or so a few days ago). The wholesale price of gas is down about 60 cents a gallon from a month ago. The news on prices and inflation is not all bad, and this may stabilize in the near future.
My car dealer friends tell me: "Wait a few months, and as new computer chips come on line, car prices will come down." Will car prices decline, take a deep breath and lets wait and see.
As for me, I think I am going to buy an electric Tesla Pick up, when they come out. Just to give the new look and technology a try.