Author, Alan Nevin September 2022
It’s a shame that inflation grabs all the business section headlines, but it is rather important for us to analyze what a 9.2% rate of inflation means.
Let’s look at your monthly expenses: if you are like most homeowners, your mortgage payments are the same every month as are your insurance and property taxes. If you have a car loan, it’s the same amount every month. If you have life insurance, it’s the same each month.
Looking at the Consumer Price Index of the Bureau of Labor Statistics, the key culprits are food and energy (8.5% and 32.9%), respectively; however, those two items account for 22% of consumer spending. Overall, for most of us, the CPI is far less than 9.2%,
The reality is that for most of us (and particularly homeowners) inflation relates to less than half of the items in our monthly expenditures. And that’s not so bad.
State of the Economy
The really good news Is that the National and local economies are doing swimmingly well. In July of this year, San Diego has recovered all its losses from COVID and have returned to 1.5 million jobs. Better yet, our unemployment rate is as 3.2% — that’s almost as close to zero as you can get.
And the residential construction business is having its best year since 2005 with 6,000 units permitted in the first half of this year.
Overall, the Nation, California and San Diego County have a lot to be thankful for and continue to be economically healthy and expanding.