Inflation in essential areas, including car insurance, car repair, transportation, rent, homeowner costs, and food away from home, far exceeds the 3.2% CPI headline rate, challenging the notion of a broader decline in prices and signaling an ongoing affordability crisis for consumers.
While CPI inflation is at 3.2%, inflation is much higher in many basic necessities:
1. Car Insurance Inflation: 19.2%
2. Car Repair Inflation: 9.6%
3. Transportation Inflation: 9.2%
4. Rent Inflation: 7.2%
5. Homeowner Inflation: 6.8%
6. Food Away From Home Inflation: 5.4%
7.…— The Kobeissi Letter (@KobeissiLetter) November 17, 2023
This brings up another important question:
Would the economy benefit from a period of deflation?
The last time the US experienced deflation was for a short period in 2009.
While prices declining sounds great, it's generally a bad sign for the overall economy.
— The Kobeissi Letter (@KobeissiLetter) November 17, 2023
My car insurance just went up 30% after 6 months
— Stin (@Stin_101) November 17, 2023
Employers have seen an uptick in older people applying for entry-level positions, per the Financial Post.
— unusual_whales (@unusual_whales) November 17, 2023
40% of under 30s received family money for down payment, per Redfin.
— unusual_whales (@unusual_whales) November 17, 2023