Despite the claim that inflation was only going to be "transitory", inflation continues to remain out of control and it's getting worse.
The official inflation numbers for October have been released and it shows that inflation is up 6.2% for the past 12 months. Even if you buy that phony number, inflation is the highest it's been in 31 years. But inflation is only that low because of the way the Fed calculates inflation now compared to 1970's. If we measured inflation the same way we did back then, the real inflation number would be over 14%.
It doesn't appear that inflation is going to slow down anytime soon. The Producer Price Index hit 8.6% for the year. That means that that cost is going to have to be passed on to you. Companies like Kraft have now announced that they will raise prices by up to 20% on some of their items, starting January 9th.
Kraft is not going to be the only company that you will see even more price increases coming from in the near future. Mondelez CEO Dirk Van de Put, recently said during an analyst call that he is expecting that his company will continue to raise prices and probably will be for awhile. Mondelez is the maker of products such as Chips Ahoy cookies, Honey Maid graham crackers, and Oreos.
Just in the past year we have seen prices skyrocket across the board. Remember, the Feds target inflation rate per year is 2%. Even with their phony numbers, inflation is 3 times that and continuing to climb with no end in sight.
Just in the past 12 months:
- Gas: +50%
- Natural Gas +180%
- Propane and firewood: +34%
- Car and truck rentals: +39%
- Used cars and trucks: +26%
- Bacon: +20%
- Eggs: +11%
- Pork chops: +16%
- Ham: +7%
- Apples: +6%
- Milk: Expect to see an 8.4% spike in early 2022.
Sadly, this is only the beginning. Prices are going to continue to skyrocket and I'm expecting them to get much worse in the next few months. You need to do whatever you can to prepare for what's coming, that includes downsizing, paying down debt, and stocking up as much as you can now, because this is not going away anytime soon. You need to get your financial house in order quickly.
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