Worries About Big Ticket Item Inflation Hit Worse Level Since 1982
John Carney 11 Jun 2021
The last time Americans were this unhappy about prices of big-ticket purchases was 1982, when the Federal Reserve was fighting a war against double-digit inflation.
The University of Michigan’s survey of consumer sentiment showed U.S. consumers more concerned with higher prices of appliances, houses, and cars than anytime in 39 years, according to the survey’s chief economist Richard Curtin.
The survey records spontaneous mentions of prices of these major purchases and subtracts comments about higher prices from comments about lower prices. The difference has plummeted this year, indicating a huge imbalance in the comments due to a much larger volume of comments on higher prices.
“Spontaneous references to market prices for homes, vehicles, and household durables fell to their worst level since the all-time record in November 1974,” Curtin said. “These unfavorable perceptions of market prices reduced overall buying attitudes for vehicles and homes to their lowest point since 1982.”
Curtin said concern over prices of these categories was especially high among the top-third of earners. These consumers are responsible for more than half of retail sales.
The price of used cars rose by 7.3 percent in May, following a 10 percent gain in April. Home prices have hit record highs. Appliance prices are up 12.3 percent from a year ago, according to the most recent report on the Consumer Price Index.
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https://www.breitbart.com/economy/2021/06/11/worries-about-big-ticket-item-inflation-hit-worse-level-since-1982/
