Above the Fold   

A Few Things That Have NOT Been Affected by Inflation 

As we enter a new year, the average consumer is certainly feeling the pressures of inflation. We are paying for everything from housing to cars, energy, food, and even baking goods such as eggs and flour. But not everything is getting more and more expensive. In the last several months, Americans have seen a break in gas prices, which are actually now down to late-2019 levels (pre-pandemic). And while watching the news might be a bummer at times, prices for televisions have been falling on a year-over-year basis since March, dropping another 17% in November alone. Car rentals are also finally coming back down to earth after peaking earlier this year, with declines in those prices beginning in May 2022. Unfortunately, it still costs 40% more to rent a car or truck today than it did in 2019. Another interesting price decline can be found in sporting event tickets, which are actually slightly lower than they were in 2019 before the pandemic hit. 

There are also other indications that prices are moderating, and should continue to do so as the economy weakens, which is its current trajectory. Some prices are likely to remain “sticky” and less likely to change dramatically, but many service costs (think auto and home repairs), along with raw and finished materials, could continue to see declines, which should hopefully provide at least some relief over the next six months or so.  

Three Things                                  

McDonald’s Tests Futuristic “Job Killer” 

It’s no secret that the pandemic has changed the way we live, eat and work. Food inflation has squeezed the profits of many restaurants, while a vast majority are still struggling to maintain reliable staffing. Rather than wait for trends to change, McDonald’s is taking action. The company opened its first heavily-automated restaurant in Fort Worth, Texas. The location is optimized for digital ordering and pickup, utilizing order kiosks and even conveyor belt systems to deliver food to customers while “minimizing human interaction.” A smaller staff will still be required to operate these new locations, but will be primarily focused on food, order prep and quality. Experts believe a mass adoption could cause millions of Americans to lose their job, and some are threatening to boycott the global fast-food leader.  

Why Did Netflix Just Purchase a Military Base? 

With content competition heating up, digital video pioneer Netflix decided it needs to up its production game in order to get a leg up on its peers. As it turns out, a decommissioned Army base on the Jersey Shore may be just the place. Between the acquisition of the former military parcel and its transformation into a state-of-the-art production facility — one with 12 sound stages, ancillary production spaces and offices — Netflix will spend over $900 million. The location will be its eastern production hub and employ between 1,400 and 2,000 people, all cranking out original content for the company. The announcement coincided with data from research firm Parks Associates, showing that Prime video supplanted Netflix as the number one streaming service in America.  

Europe’s Soaring Energy Prices Temper EV Push 

With the Russia-Ukraine war still raging and chilly temperatures blanketing the Eurozone, the costs for electricity are surging, and the “efficiency factor” that electric vehicles (EVs) promised has been turned on its head. In Germany, for example, the average cost for household electricity has soared to €0.43 per kWh making it more expensive to use a Tesla Supercharging station versus filling an economy car with enough fuel for a 100-mile journey. What’s more, EV subsidies are ending in many countries, while owners of legacy EVs are discovering lofty repair bills as their cars age. Obviously, there’s the environmental argument, but the typical consumer still needs monetary motivation to switch to all-electric … and given the energy crisis, that tipping point may now be years away.   

In the Know                                  

You Definitely Want Late Checkout in This Hotel 

The most expensive hotel room in the world is the Empathy suite at the Palms Casino Resort in Las Vegas. The 9,000-square-foot, marble-laden masterpiece is typically reserved (for free) for high-rollers who regularly gamble with millions at stake, or have at least $1 million on credit with the casino. But if you’ve got enough wealth to shell out $100,000 per night, the 34th-floor suite, which can accommodate up to 50 people, can be yours for the taking. Upon check-in, guests receive 24-hour butler service, chauffeured car service and a $10,000 credit to use at the hotel.