Ibby Hussain, who works in marketing for a financial communications firm, says the Brooklyn, N.Y., apartment he and his fiancée rent for $3,000 a month would cost a million dollars to buy. At current rates, that means around $5,000 a month after a $200,000 down payment, not including property taxes. “And it’s not even that nice of an apartment.”
So, instead of saving for a down payment like he expected to after turning 30 and getting engaged in the past year, he splurged.
First, he bought a $1,600 Taylor Swift Eras Tour ticket and then he spent $3,500 on a bachelor party trip to Ibiza, Spain.
“I might as well just enjoy what I have now,” he says.
Inflation is merely the rate of price increase. “Lower inflation” just means that prices are rising more slowly. Meanwhile, when you shop for groceries your bill is higher. I saw a bottle of Heinz Ketchup for $7.19. It was in a neighborhood grocery, so I thought maybe the price was higher for that reason. But at Publix it was $7.49. Every time you shop you get unpleasant little shocks like that.
To be fair, that point does get made in the article:
“The fact that inflation has come down doesn’t mean prices have come down,” said Tim Quinlan, senior economist at Wells Fargo. “For consumers, as long as prices remain elevated, which is what they are from their perspective, it still kind of weighs on confidence.”
Ya think? Plus: “I’m trying to think of one area where prices have eased and I can’t think of anything.”
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