Inflationary Pressures

[cooperthedog]

There’s also stealth inflation; when a product’s quantity/size is reduced and the price remains the same (or higher) per unit.

General Mills did this last year. They cut the cost of their cereal, modified the box depth (so the box appears the same size on the shelf) and put less cereal in it, but the reduction in price was not as great as the reduction in product, so the cost per unit actually increased…

Has anyone picked up a std. Hershey chocolate bar recently? Those things are almost paper thin!

[HeadedHome]

Just to confirm my anecdotal above, here’s a direct quote from a buyer at a very large retail chain:

“As a [retailer name] buyer I normally deal with 20 price increases a year, total. I have exceeded that number during last three weeks alone.”

Inflation is coming guys, this can’t be prevented from impacting the overall numbers forever.

And when this becomes more baked into the overall interest rates, and as mortgage rates increase as a result, I am expecting incremental softening of the housing market, and overall prices.

[HeadedHome]

Just to confirm my anecdotal above, here’s a direct quote from a buyer at a very large retail chain:

“As a [retailer name] buyer I normally deal with 20 price increases a year, total. I have exceeded that number during last three weeks alone.”

Inflation is coming guys, this can’t be prevented from impacting the overall numbers forever.

And when this becomes more baked into the overall interest rates, and as mortgage rates increase as a result, I am expecting incremental softening of the housing market, and overall prices.

[HeadedHome]

Just to confirm my anecdotal above, here’s a direct quote from a buyer at a very large retail chain:

“As a [retailer name] buyer I normally deal with 20 price increases a year, total. I have exceeded that number during last three weeks alone.”

Inflation is coming guys, this can’t be prevented from impacting the overall numbers forever.

And when this becomes more baked into the overall interest rates, and as mortgage rates increase as a result, I am expecting incremental softening of the housing market, and overall prices.

[HeadedHome]

Just to confirm my anecdotal above, here’s a direct quote from a buyer at a very large retail chain:

“As a [retailer name] buyer I normally deal with 20 price increases a year, total. I have exceeded that number during last three weeks alone.”

Inflation is coming guys, this can’t be prevented from impacting the overall numbers forever.

And when this becomes more baked into the overall interest rates, and as mortgage rates increase as a result, I am expecting incremental softening of the housing market, and overall prices.

[HeadedHome]

Just to confirm my anecdotal above, here’s a direct quote from a buyer at a very large retail chain:

“As a [retailer name] buyer I normally deal with 20 price increases a year, total. I have exceeded that number during last three weeks alone.”

Inflation is coming guys, this can’t be prevented from impacting the overall numbers forever.

And when this becomes more baked into the overall interest rates, and as mortgage rates increase as a result, I am expecting incremental softening of the housing market, and overall prices.

[DWCAP]

Just a thought, but doesnt all the CPI numbers and such get seasonally adjusted. So the feds have been hiding alittle of the inflation in this “seasonality” buisness. What happens when the season says it should fall?

Do we suddenly get a month when inflation is 10%? Or does it all get bled out over years of unusually “high” inflation. I dont know the answer to this, but somehow the numbers have to tell the story that inflation in prices is higher than the Gov is reporting. Anybody have an idea?

[DWCAP]

Just a thought, but doesnt all the CPI numbers and such get seasonally adjusted. So the feds have been hiding alittle of the inflation in this “seasonality” buisness. What happens when the season says it should fall?

Do we suddenly get a month when inflation is 10%? Or does it all get bled out over years of unusually “high” inflation. I dont know the answer to this, but somehow the numbers have to tell the story that inflation in prices is higher than the Gov is reporting. Anybody have an idea?

[DWCAP]

Just a thought, but doesnt all the CPI numbers and such get seasonally adjusted. So the feds have been hiding alittle of the inflation in this “seasonality” buisness. What happens when the season says it should fall?

Do we suddenly get a month when inflation is 10%? Or does it all get bled out over years of unusually “high” inflation. I dont know the answer to this, but somehow the numbers have to tell the story that inflation in prices is higher than the Gov is reporting. Anybody have an idea?

[DWCAP]

Just a thought, but doesnt all the CPI numbers and such get seasonally adjusted. So the feds have been hiding alittle of the inflation in this “seasonality” buisness. What happens when the season says it should fall?

Do we suddenly get a month when inflation is 10%? Or does it all get bled out over years of unusually “high” inflation. I dont know the answer to this, but somehow the numbers have to tell the story that inflation in prices is higher than the Gov is reporting. Anybody have an idea?

[DWCAP]

Just a thought, but doesnt all the CPI numbers and such get seasonally adjusted. So the feds have been hiding alittle of the inflation in this “seasonality” buisness. What happens when the season says it should fall?

Do we suddenly get a month when inflation is 10%? Or does it all get bled out over years of unusually “high” inflation. I dont know the answer to this, but somehow the numbers have to tell the story that inflation in prices is higher than the Gov is reporting. Anybody have an idea?

[HeadedHome]

Hey guys, just saw an official statement by Lowe’s Companies, who also happen to be a large customer of mine. According to their statement today, Lowe’s “is seeing unprecedented levels of price increases from suppliers, and are passing that along to consumers as (they) can.”

I also have a couple friends in the food industry, and they are doing exactly the same thing.

In my opinion, stagflation is not coming, it’s here. Fed is in a pickle, as any rate increase will further explode the housing market, but failure to do so will lead to spiraling inflation.

I’m typically a glass half full kind of guy, but I think the underlying fundamentals of our economy are facing some serious short and medium-term pressures.

What do you guys see, or what am I missing? The best opportunity for short-term easing of pain appears to be in the commodities area, especially oil. It seems that many people are more leaning toward the realization that there is a significant element of speculation in the commodities market. This has always been the case, but it does appear to be impacting the pricing more than in years past (e.g., oil demand has surged, but not sufficiently in the last 12 months to justify the price premium over that period).

Thoughts?

[HeadedHome]

Hey guys, just saw an official statement by Lowe’s Companies, who also happen to be a large customer of mine. According to their statement today, Lowe’s “is seeing unprecedented levels of price increases from suppliers, and are passing that along to consumers as (they) can.”

I also have a couple friends in the food industry, and they are doing exactly the same thing.

In my opinion, stagflation is not coming, it’s here. Fed is in a pickle, as any rate increase will further explode the housing market, but failure to do so will lead to spiraling inflation.

I’m typically a glass half full kind of guy, but I think the underlying fundamentals of our economy are facing some serious short and medium-term pressures.

What do you guys see, or what am I missing? The best opportunity for short-term easing of pain appears to be in the commodities area, especially oil. It seems that many people are more leaning toward the realization that there is a significant element of speculation in the commodities market. This has always been the case, but it does appear to be impacting the pricing more than in years past (e.g., oil demand has surged, but not sufficiently in the last 12 months to justify the price premium over that period).

Thoughts?

[HeadedHome]

Hey guys, just saw an official statement by Lowe’s Companies, who also happen to be a large customer of mine. According to their statement today, Lowe’s “is seeing unprecedented levels of price increases from suppliers, and are passing that along to consumers as (they) can.”

I also have a couple friends in the food industry, and they are doing exactly the same thing.

In my opinion, stagflation is not coming, it’s here. Fed is in a pickle, as any rate increase will further explode the housing market, but failure to do so will lead to spiraling inflation.

I’m typically a glass half full kind of guy, but I think the underlying fundamentals of our economy are facing some serious short and medium-term pressures.

What do you guys see, or what am I missing? The best opportunity for short-term easing of pain appears to be in the commodities area, especially oil. It seems that many people are more leaning toward the realization that there is a significant element of speculation in the commodities market. This has always been the case, but it does appear to be impacting the pricing more than in years past (e.g., oil demand has surged, but not sufficiently in the last 12 months to justify the price premium over that period).

Thoughts?

[HeadedHome]

Hey guys, just saw an official statement by Lowe’s Companies, who also happen to be a large customer of mine. According to their statement today, Lowe’s “is seeing unprecedented levels of price increases from suppliers, and are passing that along to consumers as (they) can.”

I also have a couple friends in the food industry, and they are doing exactly the same thing.

In my opinion, stagflation is not coming, it’s here. Fed is in a pickle, as any rate increase will further explode the housing market, but failure to do so will lead to spiraling inflation.

I’m typically a glass half full kind of guy, but I think the underlying fundamentals of our economy are facing some serious short and medium-term pressures.

What do you guys see, or what am I missing? The best opportunity for short-term easing of pain appears to be in the commodities area, especially oil. It seems that many people are more leaning toward the realization that there is a significant element of speculation in the commodities market. This has always been the case, but it does appear to be impacting the pricing more than in years past (e.g., oil demand has surged, but not sufficiently in the last 12 months to justify the price premium over that period).

Thoughts?

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