The writer, Claire Jones, nails the issue.
It's not about declining prices in one part of the consumer basket offsetting increases in another part. It is not about hedonic adjustments lowering index prices on things that have doubled in price because "quallity improvements".
It is about people paying more for food and shelter and transportation until there is "less money than there is month."
From FT Alphaville:
We’re no longer “team transitory”.
Not because we think we’re about to see the sort of wage-price spiral we saw in the 1970s and 1980s. We still don’t.
And not because we’ve changed our minds and think the chinks in global supply chains that have pushed up the prices of consumer durables are here to stay. We think they will, at some point, abate.We’re no longer “team transitory” because, regardless of your views on the labour market and semiconductor chips, we’ve come to realise how callous the phrase sounds....
....MUCH MORE
