Earlier this month, our U.S. Treasury Secretary and former head of the Federal Reserve, Janet Yellen said she didn't think that the 2021 CPI numbers represent actual real inflation but rather just a getting back to normal after the pandemic.
Administration and Fed officials both have consistently dismissed concerns over accelerating inflation. They’ve argued that price gains expected this year will be largely transitory, and that the central bank has tools to contain any persistent effects.
Of course, the Fed isn't suppose to listen to her or the Administration in their actions and who knows what they may do - most likely this summer when they all get together at Jackson Hole to discuss actions.
What you are seeing in prices of products and services that you use everyday?
Think there is some direct affecting product force that is causing price increases - are these momentary and explainable and will moderate shortly?
Here is how the measure is computed by the government -
Except for gasoline which fluctuates but still creeps upward overall, I can't remember other prices for typical monthly expenses ever going down once they've gone up. We get acclimated to them or to doing without, while suppliers smile as they shelter profits in the Caymans. Whether that's inflation or capitalist greed, or the combination, I don't know.
One of the reasons why the government uses the Consumer Price Index that they do for cost of living adjustments (there are several) is because that is what they figure most people do - not buy, change to another product because it is cheaper, or just adjust to paying more.
There are things that didn't go up during the pandemic because the demand was down. Routine medical care is an example.
There were other things that went up during the pandemic because of supply and demand - like plexiglass
There are things that are in limited supply because they are missing a manufactured product (like computer chips in cars, computers or appliances) Don't know about their prices.
Used cars are evidently in big demand and those prices are up if they are in good repair and the chips and parts that are missing for new cars.
Homes prices (same with rent) are and , again because of supply and demand and housing has a 33% weight in figuring inflation CPI.
Building materials are pretty much up too - now whether or not that is due to some type of shortage and it will moderate or whether these prices are with us for the future, I don't know.
Not exactly an inflationary consideration, but I do know my auto insurance has gone up but then you have to look at the price of new cars (average at $ 37,000) which could be that high or even higher as one might be in an accident with and I understand it.
I will admit that I am concerned about inflation but right now that as far as I have gotten - concerned.