URGH!!! Why are prices going up on everything?

[jschmidt]

Sorry, just ranting a bit here, but:

auto insurance, health insurance AND homeowners insurance have all gone up. Homeowners insurance has TRIPLED. $950 a year!

cable/internet access is up $15 a month.

This is so frustrating. We are fairly frugal, and this is driving me insane!

[Rogar]

I actually think that inflation is stacked against us frugal folks. The essentials do seem to go up more than the basket of goods and services the government uses for their inflation index, which is what is used for decisions of financial policy. Which in turn keeps my income from conservative fixed income investments low. So it's kind of a double edged sword. My insurance rates have pretty much stayed the same this year, so far. But have noticed ticks upward for food, coffee, utilities and gas.

[Wildflower]

Guess we need to get used to it....

Our house insurance was the same for several years, but has gone up $65 - $75 annually the past 3 years. While the value of our house keeps going down, the price to replace it keeps going up. Health insurance has gone up recently for everyone I know. Gas prices are going up, food prices are going up. We're retired and I am scared as to what prices will be in 10 years....

[ApatheticNoMore]

While the value of our house keeps going down, the price to replace it keeps going up.

I feel the same way about my car. The value is obviously going down (I mean come on it's a car, it depreciates), but the auto insurance keeps going up.

[goldensmom]

That is a question that my husband often rhetorically poses. Besides many factors outside of our control, my answer to him is 'because they can'. Those who own a commodity that I want or need can sell it for whatever price they want because it belongs to them and not to me.

I cannot control prices on anything but I do have some control over how I use the product in some cases. Gas prices go up, I drive less but when insurance rates to up I have no choice but to pay it. Our health insurance premiums have gone up 250% over the past 3 years - no choice but to pay it so we cut expenses somewhere else. As a result, the extra money we pay for the insurance does not go into the economy elsewhere. As I see it, no one wins but the sun still comes up every morning and my dogs and husband loves me.

[ApatheticNoMore]

Well I suspect it's a rhetorical question and nothing wrong with that, yes I'd like some cheese with that whine, only cheese has gone up in price so I can't. :( ;)

If it's not a rhetorical question: the simplest explanation is always money printing. So I'd suggest: this should always be suspected first in rising prices just by Occam's razor. Fear of the resulting inflation from this also always drives commodities speculation in the modern world leading to increased commodities prices, always. They have been trying desperately to create some inflation since the recession started, one of these days they might succeed. That the average person is always caught between the devil and the deep blue sea in the modern economy as he's either dealing with high unemployment or high inflation in daily purchases, yea I suspect so. Lots of reasons people suspect the modern economy is not working very well.

Now ... it's not that I don't believe in peak oil (we are almost certainly past peak), not that I don't believe global warming can affect certain crop yields, etc.. It's not that I can't see beyond the money illusion to underlying reality and realize there are problems there and those problems concern me the most at the end of the day. Because all money could be abolished tomorrow and we'd survive (with some difficulties and wealth changing hands obviously), but the underlying resources are what we need to survive. I'm just not satisfied that what we're seeing right now (not tomorrow, but right now) can't be explained by money alone and that's always the simplest explanation.

[kib]

In my mind, I picture a bucket of water, the water level represents expense. Variables like rain, evaporation, snow, a garden, a frog, infusions of water from the hose - in other words, supply and demand, responsible or irresponsible spending and saving by individuals and governments, political events, artificial manipulation of the market or the money supply, individual catastrophic events and so on - can all raise (or even lower) the water level. But there's also a steady trickle of sand into the bucket. The sand is the impact of things like peak oil and climate disruption, ecosystem degradation, population growth. This sand is really the eventual issue, it will continually push an overall trend upward in price regardless of what we do to the water itself, but there's probably never going to be a decisive tipping point moment of price increase that's definitively and solely caused by it.

(I must admit that once again, this is an extremely frustrating viewpoint as I see so many efforts to control the level of the water by manipulating the water, but very few real attempts to permanently improve the situation by removing or even decreasing the flow of that easily ignored sand.)

[sweetana3]

From our travel, a lot is pure supply and demand. If you could visit India and China and see how rampant the consumerism is growing and the use of resources that the USA took for granted, it will only become more expensive to buy any of these resources. The list includes metals, oil, food, etc.

More demand and static supply = increased cost.

[loosechickens]

kib, do I ever tell you how much I enjoy and am often enlightened by your analogies? You are really gifted in that form of explanation for things.

And, yes, I agree.......not nearly enough attention is being paid to the sand that is quietly and inexorably trickling into that bucket, and that is almost the most important consideration........

thanks.......

[Yppej]

Things are going up where I am too, but not tripling. Do you live in a hurricane zone or somewhere else that the insurance company would prefer not to be doing business? Have you made any claims? That's outrageous. Have you shopped around?

[ljevtich]

Sorry, just ranting a bit here, but:

auto insurance, health insurance AND homeowners insurance have all gone up. Homeowners insurance has TRIPLED. $950 a year!

cable/internet access is up $15 a month.

This is so frustrating. We are fairly frugal, and this is driving me insane!

What I would suggest shopping around for the auto, health and homeowners insurance. We did, and told the old companies that we were moving to a new one unless they could match it. We helped our parents with their phone/TV/internet service and changed it from Cable to FIOS - and they got it all for cheaper. They also got their cell phones for cheaper too.

We do not have homeowners insurance, and we only have liability insurance on the truck and comprehensive/liability insurance on the RV. We have it through Geico. We shopped around first, and then told them that we might have to go someplace else, and they lowered our insurance. Of course we got an older truck, took defensive driving courses, and do not commute to work, so our insurance is low.

Our health insurance is only if we are sick, no check ups, etc. We save money to use for check ups.

Most people would think we are underinsured but I feel like why have the insurance? We are insured, we just pay less than most. That way, if we have something catastrophic happen, we will be OK. If it is maintenance, then we pay out of pocket when needed.

I have not found food prices really going up, but we will see...

[jschmidt]

just an update here folks - sorry for the false alarm. My HOI did not go up - I merely forgot about how much it costs. Epic fail. *smacks head*

[gimmethesimplelife]

Do you know what I find aggravating? The prices of secondhand merchandise at thrift shops all over Phoenix has gone up markedly recently. Especially at the Salvation Army! I'm not liking this but it sure does keep more clutter out of the house and more money in my pocket.....Good things, actually, but I still find it annoying as when something breaks down that can be replaced with something secondhand, it is not going to be the automatic go to place for me anymore.....Rob

[Miss Cellane]

Do you know what I find aggravating? The prices of secondhand merchandise at thrift shops all over Phoenix has gone up markedly recently. Especially at the Salvation Army! I'm not liking this but it sure does keep more clutter out of the house and more money in my pocket.....Good things, actually, but I still find it annoying as when something breaks down that can be replaced with something secondhand, it is not going to be the automatic go to place for me anymore.....Rob

One reason for the price increases might be that rent and utilities have been increased. And even though some stores have volunteers, there is usually at least one paid person who oversees the entire store, and they need to be paid a living wage. And sadly, so many broken/stained/unusable things are donated that must be discarded, because no one would buy them--and the cost of getting rid of this stuff must be borne by the charity that runs the thrift store. While I don't think these stores generate large profits, I imagine that many have to cover operating costs.

[Zzz]

One reason for the price increases might be that rent and utilities have been increased. And even though some stores have volunteers, there is usually at least one paid person who oversees the entire store, and they need to be paid a living wage. And sadly, so many broken/stained/unusable things are donated that must be discarded, because no one would buy them--and the cost of getting rid of this stuff must be borne by the charity that runs the thrift store. While I don't think these stores generate large profits, I imagine that many have to cover operating costs.

Plus, there are also expenses such as building insurance (if they own), liability insurance, worker's comp for any paid employees, etc. They'll have lawyer and accountant's costs, too. Their cleaning products cost more, as do any replacement items they need -- light bulbs, shelving, etc (The Goodwill nearest me recently spent thousands of dollars on brand new shelving. I about passed out when I saw the money they spent to remodel in the midst of this economy. Their old shelves were crowded...but functional. The new shelves do allow more things to be displayed, but at what cost?) Don't forget fancy computerized registers & bar coding systems at some places, or simpler grease pencils at other places. They also have MAJOR fees for waste removal -- people donate a LOT of stuff that is worthy only of the dumpster. This is one of the biggest expenses for some secondhand shops. How about snow removal in parking lots? Salt for the sidewalks and slick areas? Shopping carts (if not donated). If they buy new plastic bags, those have gone up, too.

Most thrift shops don't have donated labor, either. Most people working are paid employees...