Weird Times for Inflation

The price of eggs are essentially unchanged over the last 15 years:

The price of milk is essentially unchanged over the last 15 years:

Avocado prices are pretty much unchanged:

Lean hogs haven’t really changed:

Rice prices haven’t really changed:

So what is exactly happening?

Why are so many people freaking out about inflation?

Two pretty historic shifts have basically gone “viral” in a matter of 24 months. First, a virus caused quite a bit of hysteria. People got up and moved. More homes were bought and sold in that period of time than at any other point. Sprinkle in a little stimulus, and well, here we are.

Now there’s a war between Russia and Ukraine. That seems to have caused a second wave of panic for things that are immediately disrupted by the supply chain. Russia supplies a lot of oil and Ukraine supplies a lot of wheat. Well, let’s take a look – here’s oil:

But then again, if you adjust oil prices for the Covid stimulus, the economic growth and bounce back since the pandemic happened, oil prices are a giant yawn:

If you’re really worried about wheat or corn, it’s really not that hard to grow some if you have a back yard. The planting season is quickly approaching. India is pretty excited:

Inflation mania!