this post was submitted on 18 Dec 2023
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The economy’s strength and stability — defying many of the most optimistic predictions — represents a remarkable development after seemingly endless crises

As 2023 winds to a close, Powell and his colleagues are far from declaring victory on inflation. They routinely caution that their actions could be thwarted by any number of threats, from war in the Middle East to China’s economic slowdown. Americans are upset about high costs for rent, groceries and other basics, which aren’t going back to pre-pandemic levels. The White House, too, is quick to emphasize that much work remains.

Yet the economy is ending the year in a remarkably better position than almost anyone on Wall Street or in mainstream economics predicted, having bested just about all expectations time and again. Inflation has dropped to 3.1 percent, from a peak of 9.1. The unemployment rate is at a hot 3.7 percent, and the economy grew at a healthy clip in the most recent quarter. The Fed is probably finished hiking interest rates and is eyeing cuts next year. Financial markets are at or near all-time highs, and the S&P 500 could hit a new record this week, too.

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[–] TheAlbatross@lemmy.blahaj.zone 75 points 11 months ago (4 children)

Yo ngl I cannot care one iota about the S&P 500 when food costs nearly double what it did before the pandemic and rents are skyrocketing.

[–] tburkhol@lemmy.world 47 points 11 months ago (3 children)

Where I am, the $5 eggs are back down to $1.80, and the $6 milk is $2.89. Feels the same as before-times.

It's hard to find restaurant lunch under $15, which is around 50% more than 2019, and even the gyro counter added a default tip when they stopped accepting cash. That's sad, but I cook more now.

[–] June@lemm.ee 12 points 11 months ago (1 children)

2 years ago yogurt was 40 cents, today it’s 80. Bacon was $3 a pound, today the cheapest is $4.50 unless it’s on sale. Frozen pizzas were $4, $5 on the top end, now they’re $6-$15… for a frozen pizza. Ramen was 20 cents, today it’s 55. String cheese was $4, today it’s $7. A small bag of shredded cheese was $4, now it’s $8. Cereal was $3, today it’s $5 and you get less. Have you seen how expensive a bag or Doritos is? A small bag costs more than what a party size bag used to cost, and that’s true for all chips.

I have dozens of items that are out of reach today that were common fare 3 years ago. Milk and eggs have come back down, yes, but not the rest of it.

[–] tburkhol@lemmy.world 3 points 11 months ago

I guess my response is that most of what you've listed are significantly-to-highly processed foods, and I lump them in the same bucket as 'restaurants.' To me, it's not that the food has gotten expensive, so much as corporate structures are 'extracting more value.' And I do realize that a lot of people are in situations where those processed foods are their only practical options. I just think that General Mills, PepsiCo, and Blackstone deserve the blame and hate, more than 'the economy.'

BTW, I would love me some $4.50/pound bacon. I don't remember it less than $6/12 oz in the last 5 years, except occasionally on sale. I used to see fairly regular $1/pound pork shoulder sales, and I haven't seen that under $1.80 in a while, so there definitely are basic foods with inflated prices. My personal experience is that I still get out of the grocery store for the same $40 I was spending in 2018, although I have also given up chips and started making my own yogurt. Switched from beef to chicken, pork and beans, although that's more for carbon reasons than cost.

[–] alvvayson@lemmy.world 10 points 11 months ago

Here from Europe, a similar situation.

Some things are still expensive, but a lot of things have gotten better.

Moreover, salaries did increase, so I can't complain too much.

We are extremely fortunate to have so easily beaten this round of inflation.

[–] numberfour002@lemmy.world 3 points 11 months ago

It's mostly the same here.

Grocery prices have definitely gone up overall in my part of the world, but outside of outliers (or outright liars), prices aren't double. But lots of people around here will claim their grocery bill is double what it was before covid. In general, I'm not willing to say any specific person's "twice as much" isn't true, I don't know their circumstances, but my experience and pretty much all the reports I've seen don't bear that out (again for my part of the world).

The egg thing was a prime example. People were going around saying "eggs are $10 now" but then when I'd look at the local grocers, it was only the premium brands' free range, organic, woman-owned, holistic, fair-trade type eggs that were anywhere close to that -- and it was always the type of person that you know never bought those types of eggs to begin with.

I have seen a lot of convenience and luxury grocery items that I used to buy have gone up around 50% or gone down the shrinkflation route. And for sure, there's been an uptick in temporary shortages and price spikes.

Restaurants around here are also like you mentioned. Prices have really gone up there. I don't eat fast food often, but a month ago I was traveling and decided to get fast food breakfast at one of my old favorites. A biscuit and a drink used to cost around $3, now it's nearly $8. Last year, I had a craving for Wendy's and it was similar, the food that used to cost me just over $4 back in the day is now a bit more than $11. But then again, eating out is a luxury in pretty close to all circumstances.

[–] FlyingSquid@lemmy.world 30 points 11 months ago

I feel you, but there's not much Biden can do about either thing.

Unfortunately, he will get the blame for it anyway.

[–] silence7@slrpnk.net 16 points 11 months ago

It's not just the stock market. There's a wide range of metrics which are showing an improvement, and they're comparing with what didn't happen, which was a recession.

What hasn't happened is a rollback of the Reagan-era change in distribution of wealth and income. That requires getting congress to act.

[–] YoBuckStopsHere@lemmy.world 9 points 11 months ago (2 children)

That falls on your local economy and state and local elected officials. Rent is always due to local officials and how the zone the city. Local and State Corporate taxes also play a role in higher prices. If I were you, I'd check the local city council schedule and speak on those concerns.

[–] Blackbeard@lemmy.world 15 points 11 months ago* (last edited 11 months ago)

Plus, counterintuitively, rent is starting to fall in many major metro areas because we're finally seeing a notable uptick in inventory. The price of a dozen eggs is back in the neighborhood of where it was pre-Covid, and the price of a gallon of gas has wiped away almost all of its 2023 gains and is now back to roughly what it was before Russia invaded Ukraine. Not saying people across the board aren't struggling since the pandemic, because I'm sure they still feel it in a very real way, but prices are very obviously stabilizing across the board and the S&P is obviously responding to really solid underlying trends.

[–] Zorque@kbin.social 2 points 11 months ago (1 children)

Wasn't there a big controversy regarding price-fixing with national rental management companies? Yes, local policies will have a significant effect on local areas... but they're far from the only ones affecting it.

[–] YoBuckStopsHere@lemmy.world 4 points 11 months ago* (last edited 11 months ago)