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?