FT News Briefing Inflation, the Hamptons and an $800 grocery cart
Sep 16, 2022
Explore how China's local governments are innovating to cope with a property crisis. Discover the political maneuvering behind SoftBank's potential UK listing of chipmaker Arm. Delve into the impact of inflation on America's richest, particularly in upscale areas like the Hamptons. The wealthy are striving to maintain their spending despite rising costs, revealing stark economic divides. Highlighting the struggles of small cities, this discussion shines a light on the intricate relationship between consumer behavior and inflation.
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Local Governments Buying Land
- Chinese local governments, reliant on land sales for revenue, are using investment arms to buy land themselves.
- This offsets revenue decline but assumes land prices will rise, which is uncertain given oversupply in some cities.
Wealthy Spending & Inflation
- Wealthy individuals, less affected by interest rate hikes, continue spending heavily.
- This sustained spending contributes to prolonged inflation and potential economic instability.
$800 Grocery Cart
- Rana Foroohar's $800 Hamptons grocery bill highlights inflation's impact on affluent vacation spots.
- Locals are now driving further to cheaper stores due to inflated prices in touristy areas.