The Inflation Chronicles

An ongoing series, as explained here. From readers:

• I bought a pair of discount eyeglasses over the internet late last year for $79. They were from England, so the quoted price was in pounds. Because this is Chicago and our post office sucks, the first pair got lost in the mail but the kindly English chep glasses company sent me out a replacement pair free. I got an email from them yesterday. They got the original pair returned to them and wanted to know if I wanted to buy them at a slightly discounted price, since you know they may never be able to sell my exact prescription in the frames I picked out. I almost did it, except I checked the price--yes, in pounds they were knocking 10 per cent off. In dollars, they were close to double what I paid 4 months ago.
  
  
• My friend went to Tijuana for dentures to save money.
  
  
• Las Vegas is having problems with copper thieves. Games have to be rescheduled because theives are ripping out the copper wiring for scrap metal. The even hit the local food kitchen ripping the copper pipes from their refigiration units.
  
  
• The Honda Classic golf tournament in Palm Beach last week offered Smuckers Uncrustables for $2.50. I don't remember ever seeing peanut butter and jelly sandwiches at a major golf or tennis tournament before.
  
  
• Our branch of the biggest local grocery chain here, suburbs north of Boston, is now shutting down at midnight. Staying open 24/7 used to be one of their mainstay advertisements, but keeping even a skeleton crew on the graveyard shift at minimum wage has become too expensive as margins get thinner.
  
  
• At happy hour last week here in Ft Lauderdale, a retired railroad engineer knew the current value of the dollar against the euro. Actually, he was off by 2/10ths of a percent but who's counting? My point is that this is the kind of stuff being discussed over a few beers nowadays.
  
  
• Premium gas is over $4 in Manhattan (that is a 50% raise from about a year ago). Organic milk near $5 at my local deli in Brooklyn. Can of sprite? $1.35. Going to a movie? $12 at Battery Park cinemas. Street food vendors have signs apologizing for having raised their prices, since wheat and eggs have all gone up more than 50% recently.
  
  
• A few months back I noticed that a lot of the bread at the supermarket appeared to have differently shaped loaves. The loaves weigh the same but the slices are wider resulting in fewer slices per loaf.
  
  
• I'm down here in FL and a relative called the other day, very upset. $44 for soup fixings and eggs at almost $5 a dozen.
  
  
• A client reports that baking flour (organic) has gone from $15 per 25 pound bag through $25 to $40 in the last 2 quarters. Futures for hard winter wheat have driven those flour prices to nearly $75 per 25 pound bag. At home, we use powdered cocoa on a daily basis. Until December, powdered cocoa in bulk was $2.89/pound but in January the price is $6.99/pound.
  
  
• IN NYC...a 64oz carton of juice has gone up 50 cents from $3 to $3.50 (in NYC)...I won't event get into the dairy products.
  
  
• Talked to one of the floor guys at TJs over the weekend. They've mostly stopped selling extra-large eggs in favor of large eggs because of the price increases.
  
  
• Breyer's Yogurt...they were the last major producer to continue selling 8oz individual packages. But just recently even they reduced their product size to 6oz...while retaining the old 8oz price. Result, 33% increase. Talk about reduced package size...In 2003 I paid $100/month for $2500 deductible catastrophic health insurance. I now pay $155/month for $5000 deductible. My low-end DSL service has gone from $15/month to $25/month in two steps over the last 15 months. They must use a lot of oil or other commodities to deliver this service to me. Brussels sprouts just went from $2.49/pound to $2.99/pound. I just said goodbye to my favorite vegetable. Bread from all major bakeries sold in grocery stores used to have the price printed on the package. I noticed this practice disappearing in the past year. When wheat and delivery costs increase faster than a loaf can be made, delivered, and sold it does not pay to commit to a given price. In this neck of the woods, I could often find a dozen eggs for a little less than a dollar/dozen as late as the Fall of 2006. Typical low prices now are approaching two dollars per dozen. I could often find 12oz frozen OJ concentrate on sale for $0.99 two winters ago, and half-gallon cartons for $2 on sale. Now those respective sale prices are $1.59 and $3. I could go on and on...Soymilk, apples, bananas, tuna, and more have all increased faster than the so-called CPI over the last two years. The increases have accelerated over the last six months.
  
  
• Two weeks ago, plain bagel (i.e., no butter, no cream cheese, no nothing); $0.75. This week: $0.90, i.e., 20% increase. NYC, btw.
  
  
• The cost of the tolls for the Lincoln Tunnel, Holland Tunnel and George Washington Bridge just went up by 33/3% from $6 to $8. The cost of a subway ride, Metro North, Long Island Railroad also increased. I even think NJ Transit prices jumped as well.

And a few from me. I took this picture at a gas station in Connecticut a few days ago:


Also, about a week ago, I saw a guy in the supermarket wearing one of these pins (details here if you don't know what it is):


It appeared to be a genuine artifact. He looked to be in his twenties, too young to remember the last great inflation, so maybe he's been buying tons of them off Ebay with thoughts of cornering the market and cashing in nicely during the next few years. If "WIN" is just a reference to some current pop culture craze about which I'm blissfully ignorant -- a new Britney tune, maybe -- please let me know.

Keep posting or emailing me your updates. Remember, behavioral changes are just as important and interesting as actual price increases. "Going to Tijuana for dentures" is good, and I'd certainly like to know how that worked out.