Weighing in on Sept. ’22 CPI

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Hey everybody, thanks for joining me today! This is Sunny with Synergy Real Estate and Property Management, and we’re going to be going over inflation data. So we’re back at 8% plus again.
So we’re actually going to be going over what that means for you as an individual and how you can actually take advantage in the long run.

So going over this inflation data, I mean, everything is going up right now. And one of those big expenses that people have is their morning coffee. So you might realize that morning coffee went from a couple of years ago, a few dollars less to today, it’s a few dollars more. And so that’s one of the big ways that people’s expenses are going to change over time, is these small purchases that we make on a regular basis, things that we don’t really think about. Our $4 coffee is now $6 coffee is really where you’re going to start to see people start to get pinched a little bit. So that $6 coffee that you got over at Starbucks actually turns into $3 bread, turning to $5 bread, a dozen eggs for $3, becoming a dozen eggs for $6. That grocery bill that you have turned into a $50 bill turns into $100 bill. And that’s now where you’re going to start to see that people are having these issues.

So how are people going to be moving forward and taking care of this extra inflation, these extra expenses that are coming to them and what’s going to be happening if we keep on increasing the rate? So one of the thought processes is if we keep on increasing these rate, we’re going to increase them to a point where we can slow inflation down. The problem becomes is if we increase them too fast and too much, we’re going to start to see that that the rest of the economy is going to start to take a hit. So if you start to say, well, we’re going to go up to 10% mortgages now, what does that look like for a buyer? Are people still going to be wanting to purchase a home at that point? And what do the prices look like of that home that they are going to be purchasing? Because that would be approximately a little more than triple what we’ve seen in the recent past. These are things that are coming along right now as far as the CPI, and we really want to bring that to you, make sure that everybody knows about it, and then how can we capitalize on that moving forward? Now we’re standing at $6.79 gas per gallon. Imagine that. I mean, I have never seen that. I can’t imagine these prices going any higher than they are right now, but this is what inflation does.

This is why everybody wants to bring inflation down and why inflation is actually a big hot topic right now, because as prices increase, it makes living life harder for just normal people. And so we want to keep those price increases as low as possible, which is why they’re targeting a 2% inflation rate, but an 8% inflation rate. We’re 4 times that. And so we really want to make sure that moving forward, we’re actually going ahead and we’re trying to mitigate that inflation. And that’s where you get the increased interest rates. That’s where you get all of these different things. Now, the Fed has said they’re going to go ahead and keep on increasing rates to mitigate that inflation. But what that does is that’s also going to affect other parts of the market, which can then potentially bring down the part of the market that they were thinking about protecting anyway.

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powerful for you as well and you can use it in the long term. Thank you.

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