You’re Seeing Big-Time Inflation in Twin Falls and Idaho
You’re not hallucinating. You’re paying more. If not for everything, for a lot of things. One inflation index showed last month the biggest spike in prices since 1992. Many current Americans weren’t yet born. We had a brief but deep recession in early 1992 and then after July, the economy turned around. It wasn’t quite enough for George H.W. Bush. He lost his bid for re-election.
Known as “stagflation” because the economy was stagnant as inflation hit double digits.
The current one term President and the Federal Reserve believe this brief spike in prices is “transitory” following last year’s self-induced recession.
More than 40 years have passed since we last saw staggering and long term inflation. Known as “stagflation” because the economy was stagnant as inflation hit double digits.
I saw some of what could be ahead if it’s not temporary. Passing a gas station near home while driving to work I take notice of the price per gallon every morning. It rose a staggering 25 cents in a day. In an earlier post I wrote about how we would see four dollars a gallon by the end of the year. Maybe it’s going to happen by the end of summer.
Higher fuel costs will ripple through the economy. It now means it’s more expensive for goods to be delivered. You’ll have fewer discretionary dollars in your pocket, especially if your job requires a lot of driving. You’ll then buy fewer goods not simply because costs are rising but also because you won’t have as much discretionary income.
CNBC explains markets aren’t yet rattled, which may be a sign expectations on Wall Street follow the “transitory” line.
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