Food, Fuel, Rent... Why is Everything Getting More Expensive?
January 16, 2022
Things Have Changed
Throughout 2021, a lot has changed. But one thing has been constant: Inflation.
As COVID still continues to take a toll on global supply chains, we’re also seeing the most significant changes in prices across multiple industries all of last year. Just in THC alone, we talked about everything from house prices hitting all-time highs to grocery bills skyrocketing.
In December, a 7% rise in annual inflation capped a year of soaring prices—the fastest pace in nearly 40 years. Let's dive into the numbers here:
- Gasoline prices, over a 12 month period rose by about 50%
- Europe saw a steep increase, where over the course of the year, wholesale gas prices rose by more than 400%, breaking every previous peacetime record. Now this was largely due to the reliance of Europe to Russia
- Prices of used cars and trucks soared 37.3% in December from a year earlier.
- A shortage of semiconductor chips and Covid-19-related manufacturing shutdowns crimped auto production, winnowing the supply of new autos.
- Home & Rent
- Rent is up a staggering 17.8% over the last year (largest annual increase ever)
Home prices up 19% (also largest annual increase ever). So true 'inflation' rate is much higher than 7%. And we can point the finger to the Fed here, as house prices are actually inflated by the Fed purchasing mortgages and other assets, and the Fed's money, making its way through the economy.
As prices rise, affordability concerns arise across the globe. In the episode the THC crew are diving into where exactly prices have been rising and how each one of us can avoid paying a premium on everything!
Our Previous Inflation Coverage that goes into greater detail:Support the show