How The Feds & The Government Deny Inflation

There is no doubt that the American economy is slowing and that we may have some bumpy days ahead of us. Our consumer prices have posted their biggest gain in 1.5 years and yet our government and the Feds deny we all are being hit with inflation. Excluding food and energy (DUH!) the core inflation rate today was posted at .3% I have always said, believe your own eyes rather than what we are being told in the daily news. What do you see going on around you?

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I’ll just take my recent, weekly shopping trip to Aldi, the so-called discount grocer of all time, as an example. It’s so ingrained into my brain that Aldi offers the lowest prices on food, that I almost automatically believe them. But a recent shopping spree told me a different story. I like to buy re-fill foods before I run out of them. Not after. By doing so, I was able to compare my current shopping trip to my last shopping trip.

Here’s what I uncovered:

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The Fit & Active bread on the left is from 3 weeks ago. The smaller, same bread on the right was from yesterday. Less bread. Smaller sizing. Same price.
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The spice on the left was from a few months ago priced at .99. The current new spices come in a much smaller package and are priced at .95.
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The turkey breast slices 3 weeks ago were priced at $3.99. Yesterday the same exact item and weight was priced at 12.5% MORE! $4.49

The stock market hit an all time high yesterday, rising above 27,000 for the first time ever (click here). This rise was based on the presumption that The Feds are going to lower the interest rates by at least .25% at the end of July at The Feds next meeting. This cause will effect people’s borrowing powers, IMHO, not a good place to be. Just because our government is deep in debt, doesn’t mean that We The People have to do the same. Cheap borrowing powers can get all of us into deep trouble as the economy continues to slow.

These facts reveal an uncomfortable truth: Cheap money has not resulted in sustained new growth, but it has produced an unprecedented explosion in debt. And the Fed’s solution is now to offer more cheap money by cutting rates again.

Anyway, that was yesterday’s news (click here) Today, barely one day later, and the news emerging is a bit different. Apparently, inflation can’t be denied for much longer click here) Because of this rise in inflation pricing, doubt is being tossed about on whether The Feds really are going to lower interest rates at the end of this month.

To better understand what is actually going on AND how We The People can survive the upcoming onslaught of economic woes, take a good look at  last nights’ NBR PBS July 11, 2019 episode. (which BTW, I think NBR is thee best economic recap of the daily news televised as of today!) Fast forward to the 10:38 time line and listen to the advice Bob Brusca, Chief Economist & Opinion Economics Maker gives the interviewer, when pressed as what people can do when facing higher inflationary coffee prices at Starbucks, Dunkin’ Donuts etc. Brusca states people can buy their own beans, grind them at home and drink a nice cup of coffee there. Really? Then what about the companies, such as Starbucks and Dunkin’ Donuts? What about their employees and distributors? What happens to them when no body shows up at their front doors to buy coffee or anything else for that matter? A complete collapse?

 

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15 comments

  1. Um, the spice jar on the left says .5 ounces, the spice jar on the right says .75 ounces….perhaps this is just a volume issue?

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    • HI Lynn. I thought about that because I couldn’t find my old bottle of Italian Seasonings to do an exact match. The dry weights are different. So, let’s think about this and let’s look at this. The bottle on the right is much smaller. Do you think ‘they’ can pack the right bottle with the same amount of same product as in the bigger bottle on the left? The answer is still no. We are getting less for almost the same price.
      I also thought about the bread. Perhaps the top of the bread got squashed in shipment. But I looked at the shipping packaging. All the breads are delivered in one layer horizontally. No loose breads are plopped on top of the loaf of breads. All breads are shipped in boxed containers, in one layer, in single file. The new bread is smaller than the old bread and billed at the same exact price. This is nothing new. All grocers do it. It’s up to us to notice.
      I’ve since purchased my spices at a different store that still sells spices in the bigger container for .99. I’ve also switched breads. I’ve also contemplated going back to baking my own breads. I may do that in the fall.
      Thanks for your comment.

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  2. Thank for another timely post. I had to go after Aldi here in NYC because their website was only showing featured specials and not actual grocery prices for the week. This was after I heard a woman in the store challenging an employee on their “low prices” claim. He replied that they are competitive. BS.
    After I contacted Aldi reminding them of the NY benefits they had received when opening their store, it took a few weeks but they finally disclosed their prices.
    As you have often written, we need to be our own advocates. Tough times ahead for sure.

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    • Aldi competes only against one major store: Wal Mart. I heard that from the Aldi employee grapevine. Don’t get me wrong, Aldi still is a superior place to shop as you still get good prices and yes! they really do beat out WalMart. But inflation creep is sneaking in their back door and please be on the lookout. Their coffee cans are still the same size but look at the ounces in the can. They’ve gone down considerably and on average, the large can makes about 40 to 50 cups of coffee LESS than it used to about a year ago.
      Sad.
      Thank you Ann for your comment.
      Stay the course!

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      • Too true Cindi! The coffee can switch has been going on for awhile now. I’ve never noticed canned coffee at Aldi here. I usually buy the German roast bag. It’s 17.5oz. and available in various strengths: mild, medium and dark. I haven’t seen anything in the US near a pound of coffee in years!

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  3. Thank you for pointing out these grocery changes. Usually, I just drift along buying what is there and not paying attention to size. I just know the bottom line though and that I am spending more for groceries. I am just glad that we have an Aldi’s so I can find good, cheap products. Still our grocery food budget is still around $300.00 or less.

    Several expenses have gone up this summer. We got a bug spray service. With the extra rain in the spring and the move near the river, we have some problems with insects and mice, so we are trying this service. When we were younger we would try and solve the problems ourselves, but we will see if the service is worth the price. Our state has raised gasoline prices. Those items and other things are raising our monthly expenses.

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    • Sue I hear you. We have to keep finding ways to bring our expenses down in order to meet our monthly allotment. I started shopping more at Job Lots to keep expenses under control.
      Thanks for your comment. Hope you have a bugless summer!!

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  4. I know sizes have been lowered even if the claim is prices stayed the same on many Aldi staples. The last time I went Walmart, I was equally price shocked. I still use my local store for some things because the convenience of it being four blocks away and being able to walk there is worth trying to do my part in keeping them in business, but it sure is hard to pay 20-40% more on items. We seem to have a revolving door of coffee places opening and closing. Starbucks were abundant 15 year ago=popping up everywhere, now so few actual stores outside of the major cities. Tim Hortons came and are now going, and now Dunkin is opening new stores. I don’t see the one in our town lasting long. the fad has already passed and it has only been about three months. .

    Liked by 1 person

    • Sam, we like to go to McDonald’s when we have an inkling for a cup of regular coffee. We get the senior discount and the price varies from .59 cents to .79 cents a cup. Free refills. Or for just $1.00 one dollar, anyone can get a good cup of coffee there. I think for anyone to pay anything more for a cup of Joe is silly.
      I know when I go to Wal Mart (we go at least once per month) I cringe when I see their prices. I used to think they were so low. Not any more. Wal mart, however, is trying to compete against the Dollar Stores. So, if you look on WalMart’s bottom shelving, you will find the same products the Dollar Store sells but for a few cents less. Hey! Anything helps, right?
      Thanks for your comment. You’re lucky you can walk to Wal mart. That’s a plus!

      Like

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