I & I Editorial BoardIn July, inflation came in lower than expected, which “defied fears of further price increases as a result of President Donald Trump’s tariffs.” That’s been happening a lot lately.
So, what’s a Trump–hating news media to do? Admit their fear-mongering was wrong? Or, invent a new term to make even good news sound ominous?
Over the weekend, CNN Business ran a story headlined: “‘Sneakflation’: How Trump’s tariffs are gradually raising costs for American consumers.”
The article admits that “inflation has remained relatively tame” this year. “To this point, consumers have been mostly shielded from starkly higher prices.”
That’s one way to put it.
In the six months since Trump took office, the Consumer Price Index has climbed just 2.5% year-over-year. That’s lower than any year under President Joe Biden, which saw prices climb 4.7% in 2021, 8.0% in 2022, 4.1% in 2023, and 2.9% in his last year.
Seems like the relative lack of inflationary pressure under Trump would be worth celebrating.
Instead, CNN treats it as some sort of trickery.
“Retailers and major brands know that many Americans live paycheck to paycheck, so they’re using ‘sneakflation’ to pass along the tariffs in small increments in hopes that consumers won’t notice or will be able to better absorb it,” CNN quotes Heather Long, chief economist at Navy Federal Credit Union, as saying.
ABC San Diego described it as “a new phenomenon” that “involves various forms of hidden cost increases that may catch shoppers off guard.” Businesses are supposedly “employing strategies like increasing the minimum purchase required to qualify for free shipping.”
But this makes no sense.
If companies knew they could get away with “sneakflation,” why would they only now start using this trick? The answer is, they can’t.
In a competitive market, if one company tried this, another could easily steal its customers away. In reality, companies are constantly trying to find ways to add features or services (such as free shipping) while keeping their prices the same.
Likewise, the idea that “small increments” in prices are somehow nefarious also makes no sense.
The Federal Reserve actually targets 2% inflation year over year – small increments in prices – because that’s what economists believe maximizes employment and stable prices.
What matters isn’t whether prices are going up in “small increments” but whether wage growth is staying ahead of overall price increases. That was not happening during the high-inflation Biden years – when real earnings fell.
But under Trump, wages are once again climbing faster than the “small increments” of price increases. According to our friends at the Committee to Unleash Prosperity, real household incomes – that is, incomes after accounting for inflation – climbed $1,174 in just the first six months of this year!
For four years, the mainstream press tried to convince the public that hyperinflation under President Joe Biden was no big deal. Now they’re trying to convince the public that a return to normal is a bad thing.
As CNN puts it, inflation has been modest “for both good and not-so-good reasons” – because, it says, prices are down in some areas, and up in others.
Huh?
That’s what happens every day! Prices for various things fluctuate depending on supply and demand. Families adjust by deciding when, what and how much to buy.
Inflation, on the other hand, is the change in overall prices. Something that, even with Trump’s tariffs, we are finally getting under control.
Sneakflation, in contrast, is a phony term that the media are glomming onto as a way to cast a shadow over anything good that might be happening under Trump.
— Written by the I&I Editorial Board
I think the only inflationary spiral going on is the TDS-economic articles that are passed on by the legacy media.
It is a shame and an outrage that many in the media covered up for the inflation that Biden’s Administration gave us.
Their only excuse is that they are too economically illiterate to realize how illiterate they are.
Because they are so blatantly dishonest-in how they cover the economy-it is obvious that they see such coverage of the economy as a team sport, rooting for one team over the other rather then report the economic news factually and objectively.
As in any other industry pretty soon Internet podcasts will become the “television news” that was once reported by NBC, CBS and ABC.
Like any economic product good coverage will push out bad and dishonest coverage.
In the past, we had stagflation, shrinkflation, and now, sneakflation. The last two describe the exact same thing. Yet all along, we had the Fed intending small inflation–the 2% number–which will destroy half the value of the currency in a generation.
Who can love that, except for a central bankster?
I went to Walmart last weekend and the cost of a 55″ Vizio TV was under $300 (Walmart owns the company). The lesser-known brands like TCL and Hi-Sense were under $200. Grocery prices were also lower on a lot of staples. Trump can’t help it if the big chain grocery stores or department stores keep gouging their customers. They raised prices when diesel was hitting $6 a gallon. Now that it’s back to just over $3 in many states, the cuts aren’t being reflected in prices in many stores. Walmart is one of the few (not a shill or affiliated) passing on the savings. Have seen no impact of tariffs on prices. Purely anecdotal.
I’ll give you an example of how consumers react. I was mixing coffees to save money. DD can went from $16.99 to 19.99 to 21.99 to 24.99 during covid. I went on strike. Nought Folgers for 11.99….took a month to get use to it. I like it!
Now DD has lowered price to 21.99. Even had $5 off coupons. Not sure if thats off the 24.99 or 21.99. Bo what. They lost me forever. Price gougers deserve their fates. Consumers, we learn to substitute!!
Is there a single Democrat in any city and state government or in Congress who is smart and independent enough to break ranks with the stultifying rigid dictates of their overlords in the Democratic Party? Or who is pro America?
Why be so hidebound to your Party dogma not to see nor to praise any of the reforms Trump’s policies are doing for all of us? Closed border, is just one!
If you want to win votes, praise the benefits that Trump is doing for the nation and yes, be critical but intelligent in your criticism of things that are debatable.
Your “holier than thou” attitudes, even after the election defeats, partly because of your insufferable arrogance and your daily declared superiority to the rest of us, do not carry any water, or gain any votes.
Grow up, mature, be supportive of reforming and improving our country, or stay out there in your never never land with the “blue haired wildebeests,” as a famous comedian calls so many out there on the far out lefty fringe.
The tariffs are just now kicking in, so price increases are likely going to be more visible in the coming months. Importers – overwhelmingly domestic firms, may eat some of the costs, and exporters may lower some of their prices because the USA is such a huge market. The tariffs have already cost companies like Caterpillar, GM, Ford, and Deere billions of dollars, so it will be interesting to see how that plays out. Earnings reports may not be that good for the next few quarters as a result.