By Tim Hunt
Inflation is soaring across the boardUploaded: Dec 7, 2021
We’ve certainly all felt the impacts of the soaring inflation rate and Biden Administration policies when we go to the gas pump.
Prices have soared year-over-year as the recovering economy coupled with California’s environmental rules have resulted in prices hitting $5 per gallon in some areas. We experienced it first-hand when we drove to South Lake Tahoe last month and then my ladies took a trip over to Costco in Carson City. We have observed that Costco gas prices are about 20 cents per gallon cheaper in Tracy or Manteca than Livermore.
That drops by another dime or more at the Folsom store. Continue on to Carson City and they drop even more. Regular gas, according to Gas Buddy, is $3.39 per gallon in Carson City at Costco compared to $4.19 at East Bay Costco warehouses.
On my trips to my neighborhood market, Raley’s, I see the same thing. I have routinely bought tri-tip roasts for about $4 per pound, a number that had climbed to $5. Imagine my surprise when it hit $10 a pound two weeks ago—it was $9 in this week’s advertisement. Those are prices that I used to pay for steaks on sale.
The same goes for chicken. We like bone-in breasts that serves two of us nicely. For as long as I can remember, I’ve paid 97 cents per pound on sale (it may have dipped a little on occasion, but that’s been a price to stock up.) This week, Raley’s broke it’s normal pattern of sale items finishing .97. The breasts were advertised as a special at $1.27, a hefty percentage increase of more than 30%. And, that’s on an item produced here in California out at Foster Farm’s Modesto-area plant.
The year-over-year inflation was 6.2% in October, the highest since 1990. Biden Administration officials have been used the Federal Reserve’s term that it’s “transitory.” Fed Chairman Jay Powell officially retired that term when he testified before Congress last week.
Given the huge deficit spending by both of the recent presidential administrations, soaring inflation is a real concern that needs to be dealt with sooner as opposed to later so we don’t face economic medicine that we last saw in the 1980s when mortgage interest rates hit more than 15%.