Latest / Inflation and Your Money with Fexingo: Protecting Purchasing Power and Beating Inflation / How Inflation Is Hitting Your Home Internet Bill
Transcript
- Lucas: So I pulled my home internet bill this morning — Comcast, the cheapest plan they offer — and it's gone up twelve dollars a month since last summer. That's about a 16 percent increase. Luna: Ouch. And that's probably not just Comcast. I've seen the same with Spectrum in my building. Lucas: Yeah, it's pretty widespread. When you look at the CPI data, internet and cable services are running well above headline inflation — something like 4 to 5 percent year-over-year, while core CPI is around 2.2. And we're not talking about a luxury here; broadband is basically a utility now. Luna: Absolutely. And it's one of those bills where switching is a hassle, so providers know they can creep up prices and a lot of people just won't bother fighting it. Lucas: Right, and the really interesting thing is that a lot of that increase is actually tied to infrastructure spending. The big cable companies are pouring billions into fiber and DOCSIS 4.0 upgrades to compete with 5G fixed wireless from Verizon and T-Mobile. Those costs get passed through. Luna: So you're saying the competition that's supposed to lower prices is actually raising them in the short term because everyone's building out new networks? Lucas: Exactly. And on top of that, we're all using way more data. Streaming in 4K, working from home, gaming — the average household is pushing past a terabyte a month. Providers love that because they can nudge you onto a more expensive unlimited plan or start charging overage fees again. Luna: And that's before we even talk about the modem rental fee. I know so many people who just pay the ten bucks a month without thinking about buying their own. Lucas: That alone is a hundred and twenty dollars a year you can save with a sixty-dollar modem. But the bigger picture is: how do you protect yourself from this steady creep? One option is to lock in a promotional rate — usually twelve or twenty-four months — and set a calendar reminder to renegotiate before it expires. Luna: That's solid advice. And also, check if there's a citywide fiber co-op or a smaller ISP. In my neighborhood, there's a local provider that's actually cheaper than the big guys and doesn't have a data cap. Lucas: Yeah, municipal broadband is a whole other topic, but it's worth investigating. The key is to treat your internet bill the way you treat your car insurance — you have to shop it every year or two. Otherwise, you're just subsidizing the next round of network upgrades. Luna: And on that note, if this kind of money conversation has helped you think about a decision differently, it genuinely helps keep this show ad-free. You can support us at buy me a coffee dot com slash fexingo — even a couple dollars a month makes a real difference. Lucas: Absolutely. It's what lets us keep digging into these specific inflation angles without any sponsor pressure. So, back to the numbers — one thing that caught my eye in today's data is that the 10-year breakeven inflation rate is at 2.22 percent, up slightly from 2.20. That suggests the bond market still sees inflation above the Fed's target for a while. Luna: And the Fed funds rate is at 3.63 percent, flat. So the Fed is holding steady, but inflation is still running above their 2 percent goal. That puts pressure on things like internet bills to keep rising. Lucas: Right. And that's the macro backdrop for why your internet bill isn't coming down anytime soon. But there are some bright spots. Fixed wireless access from Verizon and T-Mobile is actually gaining traction — they added over a million subscribers combined last quarter. That puts pricing pressure on cable companies. Luna: But isn't fixed wireless also raising prices? I've seen Verizon's 5G Home has gone from fifty bucks to sixty-five in some markets. Lucas: Yeah, they've been raising introductory rates too. So the competitive effect isn't as strong as we'd hope. Still, having a credible alternative means you can threaten to leave and get a retention deal. I called Comcast after my price hike and got them to knock it back down by eight dollars for a year. Luna: That's a win. And it's totally worth the fifteen-minute phone call. So the practical takeaway: negotiate, buy your own modem, and consider bundling less — often the bundle discount is smaller than the sum of the individual discounts. Lucas: Good point. And also, audit your streaming subscriptions. A lot of people are paying for four or five services and using two. That's not inflation — that's just unnecessary spending. But it compounds the feeling that your purchasing power is eroding. Luna: So the real inflation story here is that the cost of staying connected — both internet and the content that flows through it — is rising faster than the official numbers suggest. And because we can't easily live without it, it's a stealthy drain on household budgets. Lucas: Exactly. And if you want to stay ahead, treat it like any other expense: track it, question it, and switch when it makes sense. The providers are counting on your inertia. Luna: Alright, so next time you get that email saying 'your monthly rate is changing,' don't just delete it. Read it, and maybe make a call. Lucas: Or switch. Either way, you're protecting your purchasing power. That's what this show is about.