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Where do you see signs of inflation?

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Y S
Y S
3 months ago

Restaurants and hair salons. I’ve experienced price increases from 10-20%

Scrooge_McDuck88
Scrooge_McDuck88
5 months ago

At this point it may be an easier list things where you don’t see inflation!

OUTinMinnesota
OUTinMinnesota
5 months ago

I could say that it’s important to create & follow a budget. But it’s better for me to demonstrate how even historic (dead) budgets continue to have value… objectivity VS. subjectivity.

I have a subjective feeling like I’m spending more for groceries currently (in 2021). And, that feeling makes it tempting to say that I see signs of inflation in food prices. But that hunch would be inaccurate; caused by recency bias.

When I examine historic budgets from the last seven-to-nine years, it objectively proves that my health insurance costs lead the “rogues gallery” of inflation.

Dental Insurance: 4.32%

METHODOLOGY: As of Dec 31, 2015, $90 was the monthly cost for my household. As of Jan 01, 2021, $121 is the updated cost. ((121/90)^(1/(7 periods)-1

Health Insurance: 4.25%

METHODOLOGY: As of Dec 31, 2014, $1,545 was the monthly cost for my household. As of Jan 01, 2021, $2,156 is the updated cost. ((2156/1545)^(1/(8 periods)-1

Medicare Part B: 3.97%

METHODOLOGY: As of Dec 31, 2013, $105 was the monthly cost. As of Jan 01, 2021, $149 is the updated cost. ((149/105)^(1/(9 periods)-1

The risk of running out of money in retirement makes it objectively a good idea to plan & track both income & expenses… aka budgeting. Alternatively, one can subjectively follow a hunch about promises, charts and graphs from a financial planner.

Last edited 5 months ago by OUTinMinnesota
R Quinn
R Quinn
5 months ago
Reply to  OUTinMinnesota

You can’t rely on the Medicare Part B premiums. They are not accurately reflecting cost increases because Congress has fiddled with the numbers.

OUTinMinnesota
OUTinMinnesota
1 month ago
Reply to  R Quinn

What a strange thing to say, R. Quinn.

My posting shows the Medicare Part B costs from both 2013 and from 2021. It also shows the method used for calculating rate-of-increase over an 8-year period.. 3.97% per year.

  • Are you suggesting that this very real out-of-pocket cost-increase that was actually paid by very real people should not be considered inflation?

In mathematics, there are no alternative facts.

R Quinn
R Quinn
1 month ago
Reply to  OUTinMinnesota

I’m saying the premiums should be higher because Congress has artificially held down required increases. The premiums we now pay are not really reflecting the cost or inflation.

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