Inflation rising-Costs to us and for us going up.

Discussion in 'Business Operations' started by 65hoss, Apr 13, 2002.

  1. 65hoss

    65hoss LawnSite Fanatic
    Messages: 6,360

    I get a Bloomberg email report daily. I thought I would pass this on to everyone for you basic info.

    Inflation May Be 2002 Surprise, Some Economists Say
    Washington: Theresa Liaw is paying 41 percent more for insurance
    on her home in San Antonio than she did in 2001. Gasoline at
    Mary Jo Keffer's filling station in Winnebago County, Illinois,
    has risen 30 percent since January.
    ``It's scary, but everything is going up,'' said Lea Ann
    Ryder of Plentywood, Montana, who is paying 4 percent more for her
    daughter Michaela's tuition at Oregon's Pacific University than
    she did last year.
    Those rising costs help explain why some economists predict
    inflation in the U.S. may accelerate this year, with consumer
    prices climbing at an annual rate of 3 to 3.5 percent by the
    fourth quarter, well above prevailing forecasts. Consumer prices
    last rose that fast for a year in 1990.
    The Labor Department reported today that producer prices
    climbed 1 percent in March because of soaring oil costs. It was
    the biggest increase in 14 months, adding to evidence inflation
    pressures may be growing. Core producer prices excluding food and
    energy rose 0.1 percent, the first increase since November.
  2. MuskTurfKing

    MuskTurfKing LawnSite Senior Member
    Messages: 338

    41% more?? Man, that's a lot. I need to call and get a quote for insurance on my truck sometime, I know it's going to be outrageous since I'm male, and a new driver....:mad:

  3. TGCummings

    TGCummings LawnSite Senior Member
    Messages: 773

    It sounds like an economic "correction" to me. We had a recession, and things need to get back on track. I think this reinforces the idea that we need to keep our prices stable this year and just "stay in business". After a correction like this, we could see economic growth, which means people have more money to spend on "luxuries" like lawn care, landscaping, and maintenance.

    After the necessities of economy stabilize, we'll get to have our own "correction". ;)

    Mind you, I'm not an economist, so this is just a wild theory...
  4. garydale

    garydale LawnSite Senior Member
    Messages: 813

    We will deal with it fellows.

    Great times ahead:
    Boomers retiring. with more money than any previous generation.
    Greatest transfer of wealth in history.(Elderly Leaving more money to dependants)
    Service based econony. ( no one does anything themselves anymore.)
    Great opportunites ahead.
    Add services, think outside the box,take advantage of enviromental movement.

    It's going to be great!!!
  5. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Messages: 870

    What a distortion!

    Fuel LESS that it was the past 2 summers.
    Everybody knows whats happening with insurance: After 8 years of premium DECLINE, we now face a 15% increase. (Shop around if your premiums went up 41%)

    I paid LESS for my equipment in 2002 than I did in 1986 and it's better stuff!

    My communications (cell phone, long distance) is a fraction of what it used to be.

    Sure, costs go up, but if you raised your prices 3% every year, you're in good shape.

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