Is this inflation?
Via Zero Hedge, and from Intuit / mint.com, comes this darling infographic – click to get a bigger version:
We must stop to think about what it means. It’s not saying that, say, health insurance prices are up 111% in the last two years, or that housing prices are down 27%. No, it’s saying that household spending on health insurance is up 111% in the last two years; household spending on housing is down 27%.
Is this what ‘hidden’ inflation (inflation not noticeable in the government CPI figures) looks like? Because it could mean that people have less discretionary income: instead of spending on vacations or on nicer homes, perhaps they are forced to spend more on monthly basics like utilities, health insurance, education and kids’ expenses, etc.
I mean, I don’t think anything has happened in the last two years to make people want to spend more on health care, education or utilities. And I don’t think there are any important areas (even housing) that got much cheaper, in the same time.
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This is a very telling chart. It is silent, but speaks loudly about disposable income. Most families with children at home live paycheck to paycheck and learn that there is always more month left at the end of the money.
Most families don’t keep track of where the money goes category by category, but they know intuitively when costs are out of whack. Unfortunately, too many people create “income” with credit cards and get in the vicious cycle of moving credit debt around and credit interest becomes an enormous cost for them.
Comment by heliotrope — July 1, 2013 @ 7:39 am - July 1, 2013
Grocery prices rose little. Take note, Erick Erickson.
Comment by Mitch — July 1, 2013 @ 7:49 am - July 1, 2013
Well, then, Mitch, there’s no need to give you any more food stamp money then, is there?
But your Obama Party is ranting and screaming about the massive rise in good prices and how your food stamps don’t go as far and how you need lots, lots more.
So are they lying?
Comment by North Dallas Thirty — July 1, 2013 @ 8:48 am - July 1, 2013
Well, I oppose food stamps, so why would I defend them, NDT?
Comment by Mitch — July 1, 2013 @ 9:02 am - July 1, 2013
But,… but,… but Herr Doktor Professor Krugman says there is no inflations.
**snert**
Comment by Ted B. (Charging Rhino) — July 1, 2013 @ 10:05 am - July 1, 2013
Either way, Quantitative Easing strikes again.
Comment by Ignatius — July 1, 2013 @ 10:07 am - July 1, 2013
Interesting that ares with the biggest increases… kid’s expenses, tuition, health care, and utilities… are also the areas most heavily regulated by the Government.
Comment by V the K — July 1, 2013 @ 10:20 am - July 1, 2013
I heard it was the same troop of circus performers that gave Barry his Nobel prize that conferred the degree on the diminutive ‘doctor’.
Just a rumor…..probably.
Comment by Jman1961 — July 1, 2013 @ 10:49 am - July 1, 2013
Response by government official, leftist economics professor, Democrat spokesperson:
“That’s just a mere co-inkee-dink. There is no relationship between the amount of gubmint regulation and higher consumer prices.”
“Just trust us on this one, OK?”
Comment by Jman1961 — July 1, 2013 @ 10:54 am - July 1, 2013
Where I feel the difference the most is in how much it costs to fill up my gas tank and pay for my utilities and Obama wants to see these things become more expensive.
Also food prices rising are regional-produce up here is already outrageous and has t gotten any better.
Comment by Just Me — July 1, 2013 @ 12:34 pm - July 1, 2013
Because both your Pelosi and your Obama have shrieked that, if you oppose unlimited welfare and food stamps, you want to murder children.
Are you a child-killer, or are Obama and Pelosi liars?
Comment by North Dallas Thirty — July 1, 2013 @ 9:32 pm - July 1, 2013