Inflation is 4X The CPI Index

We’re about to start renovations on some of the townhomes in our portfolio. Due to the delays in the supply chain, we decided to get a quote on kitchen cabinets 1.5 months ahead of time, on June 28th, 2021. The quote was $1,498.

Today, Aug 17th, 2021 – following up with the purchase, the kitchen cabinet rep says, ” so you are prepared, there has been a cabinet price increase, and the new total before tax is $1,886.”

That’s a 20.57% increase!!!

This real-life case validates that the Consumer Price Index (CPI) doesn’t paint the whole picture. One must look at the SGS-Alternate CPI by The Shadow Government Statistics. It appears to correlate closely with the real-life examples we’re seeing.

What do you think? Is this Inflation temporary? Will we see prices come down, or will we see sticky prices?