Morning Wire The Impacts of Hidden Inflation | Sunday Extra
Jun 4, 2023
Hidden inflation is squeezing middle to lower-class families more than reported rates suggest. Rising costs in housing and automotive sectors, coupled with increasing interest rates, are creating financial strain. Hardship withdrawals from retirement accounts and soaring credit card debt showcase the growing crisis. The discussion also highlights vulnerabilities in the U.S. supply chain exposed by the pandemic and the dual role of AI in optimizing logistics while posing job challenges. Discover the complexities of today’s supply chain and the workers behind it.
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True Inflation
- The reported inflation rate doesn't tell the whole story.
- Comparing April 2023 to April 2021 reveals a 13% increase, not the celebrated 4%.
Housing Market Impact
- High interest rates (over 7%) are causing housing inventory shortages.
- Homeowners with lower fixed mortgage rates are reluctant to move, impacting first-time buyers and company relocations.
Hidden Car Costs
- While car prices are decreasing, interest rates are rising sharply.
- This increased cost of purchasing isn't reflected in the reported inflation rate, which only captures the price drop.