Streams

High Prices, Part 2

Wednesday, March 23, 2011

Charlie Herman, WNYC business and economics editor, continues the discussion of inflation numbers and fields calls about where you see costs on the rise and how it may be changing your behavior.

Listeners: Where do you see prices rising? How is it changing your behavior? Call us up or tell us here!

Guests:

Charlie Herman

Comments [28]

Eugenia Renskoff from Brooklyn, NY

Hi, Brian, In the past several years, I have lost my home to foreclosure because of predatory lending and mortgage fraud. From a comfortable life where I bothered no one and no one humiliated me, I went to a person who is invisible. I shop (when I can) at the local Salvation Army. It is all I can afford. I visit the soup kitchen twice a week. I am nowhere. There are no jobs available because of my age. Eugenia Renskoff

Mar. 23 2011 05:09 PM
markbnj from sos-newdeal.blogspot.com

Brian:

It's quite simple... Inflation? Oil-prices?

It's the POLITICIANS, again.

Example:
When in the early 90's CONGRESS allowed
trading of OIL futures contracts WITHOUT taking delivery, we are NOW faced with idiots who trade oil, and NEVER ever taking delivery of the oil.

In other words, this is SPECULATION, pure and simple..

Also look at my top 10 list on how to change the economy...

ALSO:
The fact that MOST (non-financial) workers are NOT paid a fair living wage anymore (compared to 20 years ago) is a huge problem.

(here's the blog link:
www.http://sos-newdeal.blogspot.com)

Mar. 23 2011 11:43 AM
Elizabeth from Bronx

RE Health Insurance costs: I am an Obama supporter but the current situation is impossible. I pay $1,270 PER MONTH for insurance (over $15k per year). Aetna, when the announced the new rate, said that the increase was due to the requirements in the health reform law. I think it is horrible that the new law does NOTHING about the costs. It's a joke: "affordable"? And guess what? i don't have a job!

Mar. 23 2011 11:25 AM
markbnj from sos-newdeal.blogspot.com

Brian:

It's quite simple... Inflation? Oil-prices?

It's the POLITICIANS, again.

Example:
When in the early 90's CONGRESS allowed
trading of OIL futures contracts WITHOUT taking delivery, we are NOW faced with idiots who trade oil, and NEVER ever taking delivery of the oil.

In other words, this is SPECULATION, pure and simple..

Also look at my top 10 list on how to change the economy...

ALSO:
The fact that MOST (non-financial) workers are NOT paid a fair living wage anymore (compared to 20 years ago) is a huge problem.

Mar. 23 2011 11:01 AM
markbnj from www.http://sos-newdeal.blogspot.com

Brian:

It's quite simple... Inflation? Oil-prices?

It's the POLITICIANS, again.

Example:
When in the early 90's CONGRESS allowed
trading of OIL futures contracts WITHOUT taking delivery, we are NOW faced with idiots who trade oil, and NEVER ever taking delivery of the oil.

In other words, this is SPECULATION, pure and simple..

Also look at my top 10 list on how to change the economy...

ALSO:
The fact that MOST (non-financial) workers are NOT paid a fair living wage anymore (compared to 20 years ago) is a huge problem.

Mar. 23 2011 10:39 AM
Jacqueline from Roseland, NJ

It is frustrating and disappointing when buying food in a restaurant, deli or bagel shop and you are expected to pay the same amount for lesser quality foods! I would rather pay more to maintain the quality, or be charged less for lesser quality.

Mar. 23 2011 10:36 AM
Jay F.

What about ATM charges? I understand that they're also going to go up...

Mar. 23 2011 10:32 AM
mc from Brooklyn

Health insurance inflation belongs in a class of its own, it has outstripped regular inflation by 200 to 300% for a long time. The forces influencing it are many. I hope this gets addressed later in the hour.

Mar. 23 2011 10:31 AM
Trine Stiansen

Agree that Americans should get used to
higher oil proces - how abt the Oil Cos
in the spirit of social value - pays higher
share - that would go to better energy
politics

Mar. 23 2011 10:25 AM

Food, food, food. Gas, gas, gas. Cable, utilities, home heating oil, cooking propane, public transportation...

Mar. 23 2011 10:24 AM
Mark

I saw a lot more inflation under Bush when all the dollar stores unofficially became $1.25 stores. Not sure why Bush gets a free pass on that one.

Mar. 23 2011 10:24 AM

I am still unclear- many of these rising prices seem people to be due to increase in oil prices, which are due to, essentially, a scarcity or perceived scarcity of oil.

Are rising prices due to resource scarcity the same as inflation, per se? I thought that inflation had more to do with more currency being created than availability of resources. Can you clarify?
Thank you.

Mar. 23 2011 10:23 AM
Laura from Princeton

There has been considerable inflation on New Jersey Transit over the last year - rail travel went up by 25%, making train travel incredibly expensive.

Mar. 23 2011 10:23 AM
Steve from Chelsea

Cotton clothing and other cotton products are going way up due to shortages in raw cotton and bad weather in China and flooding in Pakistan.

This is affecting clothing, promotional t-shirts, and just about every other cotton product.

Mar. 23 2011 10:22 AM
Mark from Westchester

Given markets awash with stimulus money and low interest rates, traders and fund managers have gone heavily into commodity markest on the long side (buying), confident that printing so many dollars will foster inflation, and seeking better returns than are available with money markets or bonds.

Mar. 23 2011 10:22 AM
laura from Inwood

At the Inwood Greenmarket last Saturday, the folks I buy my eggs from also had a sign apologizing for the increase in the price of their eggs. Their supply costs have risen to thge level that they had to pass it on to us. The eggs are still worth it, though.

Mar. 23 2011 10:20 AM
Lloyd from Manhattan

This is all about one thing and one thing only -- keeping real estate prices high. The Fed feels it needs to reflate home prices to prevent bank failures. Keeping interest rates at zero inflates the cost of everything else at the same time.

Mar. 23 2011 10:19 AM
Laura from Brooklyn

How about metals?! I'm a jewelry designer/maker, we are used to fluctuating prices of metals but in the past couple of years the price of gold, silver even copper have doubled and tripled!!!

Mar. 23 2011 10:19 AM
Billy Gray from Greenpoint

I highly doubt that growing inflation is due to price-gouging, and it's not due entirely to fear. It's heavily influenced by rampant commodities speculation (like in 2008, where the oil and food price spikes were completely divorced from supply and demand), and the current policies of the fed, like expanding its balance sheet and keeping interest rates low.

Mar. 23 2011 10:17 AM
The Truth from Becky

Exactly who the THEY that we need to speak to about gas/oil prices again?

Mar. 23 2011 10:16 AM
Scott

If I may make a prediction: the inflation that is present is tied to international commodities. Examples: crude oil costs leads to higher gas prices and grain costs lead to higher food prices. Both are tied to increased demand in emerging economies and worries over global supplies.

Mar. 23 2011 10:14 AM
Kate in New York

Food prices are spiking. A favorite imported goat cheese I used to buy at Fairway for $ 9 each rose to $13 in one week. I no longer buy it. I also no longer buy certain organic products because I have a set food budget and have to make tougher choices. I've also started doing more vegetarian meals, which is probably more healthy for me so maybe there's a hidden benefit here!

Mar. 23 2011 10:12 AM
asdf

gym membership at lifetime fitness just went up by more than a third, to 130 a month. (my personal analysis is, it's a signal that those earning over 150k are seeing their incomes rise.

anyway real estate will probably go up by a zillion times as the hundreds of millions of japanese and chinese keep $hitting where they eat and then need new spots to do that. so those selling, sit tight. heard it hear first (though it already happened in canada).

Mar. 23 2011 10:12 AM
phil

At theFairway deli counter on the Upper West Side, in-house prepared pasta salads go from $5.99 to $6.99 overnight; a 16% increase. This is but one of many such increases. Is this really a true reflection of how much food prices are actually rising?

Mar. 23 2011 10:11 AM
James Gathings

I've seriously curtailed my purchases. I'm becoming more frugal everyday.

Mar. 23 2011 10:11 AM
Ana from Summit, NJ

I can't live without coffee!!!! I went to the supermarket Monday and the coffee I always buy was $10.99! When it was very expensive the price was up to $8.99 and on sale $5.99. I don't think I'll find it at that price anytime soon.

Mar. 23 2011 10:10 AM
Stephen from prospect heights

Not inflation, but worst=>Greed:

RENT

Same apartment 10 years ago was 4-5x times less expensive.

Mar. 23 2011 10:09 AM
Jim

The fed says inflation is under control. My property taxes are up 50% since I bought my house 8 years ago. That is insane.

Mar. 23 2011 10:08 AM

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