Sunday, February 20, 2022

‘Everything is going up’: Families feel the squeeze of Biden’s inflation; Why one oil strategist says $7 gas could be on the way; Inflation hovers at 9.7% in producer index, right near highest on record: wholesale prices of goods are inevitably passed down to consumers

‘Everything is going up’: Families feel the squeeze of Biden’s inflation:
Here are four stories of middle-class taxpayers who are finding it more difficult to get by as inflation saps their purchasing power.
Lives alone
Kew Garden Hills, Queens
So many things went up — meat is through the roof, vegetables, clothing,” says Gil-Torres, a life insurance agent who retired on disability.
“I wanted new shoes for the winter — those warm Uggs. I have an old pair I paid $150 [for] six years ago. They’re wearing out after so many winters. I want to get a new pair, but I can’t afford it. It’s over $200. It’s a lot. I’d rather eat well than buy a new pair of shoes. I need to buy smart.
“I like to eat healthy and buy fresh wild salmon. It used to cost $12 for fresh wild salmon at the supermarket. Now it’s $18.
“I still get my salmon, but I had to cut out other things. I’m not much into carbohydrates, but after a good meal, you want something sweet, like a pastry. In reality, it’s good for me [to cut out the dessert], but this is something I had to cut down.
“I drink almond or coconut milk, which is very, very expensive. It used to be $3.99 to $4.99” — a difference of at least $4 a month. --->READ LOTS MORE HERE
AP Photo/Marcio Jose Sanchez, File
Why one oil strategist says $7 gas could be on the way:
Inflation was already hurting Americans’ wallets at the gas pump. And now, the Ukraine crisis could drive those prices even higher.
Dan Dicker, a longtime oil and energy markets strategist, warns that gas prices could soar as high as $7, as the cost of crude oil continues to rise with a lack of global investment in supply and geopolitical tensions abroad.
“My guess is that you’re going to see $5 gas at any triple-digit [oil price], as soon as you get to $100. You might get to $6.50 or $7 at $120 or $130 [per barrel],” Mr. Dicker told Yahoo Finance Live. “Forget about $150 [per barrel], I don’t know where we’ll be then.”
Mr. Dicker, the founder of The Energy Word, said it’s hard to predict a timeline for such costs but that the price per barrel has already risen faster this year than he previously expected.
“This kind of fundamental growth in the oil market,” he said, “it’s hard to stop this train.”
The current national average for a gallon of regular gas was at $3.52 as of Thursday, according to AAA. That’s an increase of 16.5 cents per gallon from one month ago and 97.2 cents higher than one year ago, per GasBuddy. --->READ MORE HERE
Inflation hovers at 9.7% in producer index, right near highest on record:
Producer prices increased a staggering 9.7% for the year ending in January, according to a report on producer costs by the Bureau of Labor Statistics — meaning inflation hovered near the highest pace on record.
The high numbers in Tuesday’s producer price index report eclipsed predictions by forecasters and are near the highest in the gauge's 11-year history after the PPI rose by 9.8% in December.
The news came just days after a report for the month of January found consumer prices increased by 7.5% — the fastest annual rate in four decades. The inflationary pressures are adding to President Joe Biden’s mounting political concerns heading into the midterm elections.
The PPI gauges the wholesale prices of goods, which are inevitably passed down to consumers. --->READ MORE HERE
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