Low inflation?Higher prices?

[fdcg27]

Does anyone else notice a fairly steep recent rise in prices for a variety of goods?
We all know about fuel, since we all buy it.
What about basic commodity grocery items?
Beef of any kind is hard to find for >$2.50/lb.
Pork must be plentiful, since it remains pretty cheap, as does chicken.
Eggs are now $1.20-1.40/dz, while milk and dairy products in general like cheese and yogurt have also increased in price.
General household items, like laundry cleaning products, have also increased in price.
Clothing seems to be getting more expensive, although one sees less synthetic and more wool, linen and cotton for the money.
Inflation is supposed to have been at an annual rate of 1.5% in December.
If this is true, then why does everything seem to be getting more expensive?

 

[Blaze]

....also watching packaging getting smaller at the grocery store while price stays the same.

 

[JDD]

Well---here's the reader's digest version---with the US dollar being 'printed' at such an alarming rate, the dollar is declining vs other currencies. So much of what we buy is no longer produced here, so prices go up. Plus with oil past $90/barrel, everything cost more to ship and produce since oil is used at all levels of production in some way for most products, and last time I checked, everything gets trucked at some point. So, unless you have a railspur going right to your store, diesel prices for trucking will have a direct effect on the products' costs. If you think it's bad now, wait until the US Dollar ceases to be the world's reserve currency---then you will see inflation that will resemble the 70s, and dollar valued investments will likely decline in 'real' value. Sorry---

 

[spasm3]

Thats why i don't believe we are in a recovery. housing is down, no real jump in employment and the dollar is weak from our huge debt.

 

[Bill in Utah]

A lot of the items that they USED to add into the mix to determine inflation has been taken out since there IS inflation but that would make certain folks look bad.

Add that plus that the US Dollar is worth a lot less (and going to be MUCH worst) and your $$ is buying less.

You can look at most items. If they are not more $$ they are less in size (take toilet paper, 1/4 of a inch shorter and more $$ BOTH at the same time) Ice cream used to be 2 quarts and now its 1.50qt but more $$.

You are seeing the beginning. It will be worst for my kids and grand kids.

Bill

 

[eljefino]

Supermarkets are a ripoff?

I'm getting my laundry detergent at big lots for about 55% of what it costs at walmart which is cheaper than the supermarkets.

We have state minimum milk prices; gas stations and corner convenience stores profit just fine at those prices but supermarkets/WM charge $1/gal over.

Boneless chicken thighs are expensive everywhere for no good reason; I get perdue at BJs wholesale for less than anywhere else.

I think supermarkets expect people to be beaten down and depressed by current news and just crank up prices without any explantion. I bet their profit margins have gone up in the last few years.

Also "poor food" like spaghetti has about tripled in price in the last few years. No explanation for that either except they want to kick everyone when they're down. The cheapest wheat pasta I've found is Goya in the Mexican aisle, guess "they" figure "we" won't look there.

 

[PandaBear]

There are a lot of bad weather across the globe and pushes food prices up significantly, add the USD devaluation you'll see high food price for a while.

 

[jaj]

A lot of food products (as opposed to raw food) contains corn and corn is used as animal feed.

The law that puts ethanol in our gas has driven up the price of corn, and that's feeding into many other products in a subtle but significant way.

 

[Steve S]

Thank all the people who kep on reelecting the politicians and the bankers and major corporations that own them. Then all the people who bought houses they really couldn't afford.

 

[Studebaker]

Besides smaller packaging (when was the last time you saw a half gallon of ice cream?) some companies are playing with unit pricing.
We all have become used to the price of a gallon of milk being less than double a half gallon. We've all become accustomed to reduced unit price as the volume goes up. Recently, however, I have noticed a change.
At our Wal mart, a small bottle of Suave shampoo is priced exactly half the double sized, harder to handle, larger bottle. Not exactly a ripoff, but not the savings we have been conditioned to expect.
Now go to the frozen food section. Price the 16 0z Wal Mart brand frozen corn. Now look at the 320z. It is MORE than double the price. Maybe it is just this wal mart, but there are numerous examples of this in this store.

 

[buster]

Originally Posted By: PandaBear
There are a lot of bad weather across the globe and pushes food prices up significantly, add the USD devaluation you'll see high food price for a while.


Yes, and increased demand from emerging markets.


Most inflation is actually from OPEC and not "printing" money. We don't "print" money. That is a term used prior to 1971. Banks electronically credit/debit accounts. That's it...

I think we are clearly in more of a deflationary environment right now. Just because banks are reserved to the max doesn't mean that money is flowing through the economy yet.

 

[eljefino]

Originally Posted By: Studebaker

Now go to the frozen food section. Price the 16 0z Wal Mart brand frozen corn. Now look at the 320z. It is MORE than double the price. Maybe it is just this wal mart, but there are numerous examples of this in this store.


They're doing this with peanut butter too. They analyzed our shopping patterns and blind spots to their profit.

Try cross-shopping Walmart against BJs, NOTHING is the same unit size, nor is it any number easy to remember in one's head. Coffee, diapers, I need a notepad and calculator! PS Walmart usually wins.

It's easy for someone to throw their hands up and say "it can't be cheaper elsewhere, this store has always been the cheapest, it must be the corn lobby/ arabs/ BHOs fault"

 

[mcshooter]

inflation shows low because they dont factor in food or energy prices, so folks are predicting inflation at the jimmy carter rate

 

[opus1]

Good point, Studebaker. I was at Wal-Mart the other day to get some yogurt. Dannon's Activia was being pushed as an 8-pack for a little under $4, I think it was $3.83. Then I looked at the 4-packs which were $1.88, which x2 is $3.76. And the smaller packs had an expiration date further in the future.

Not a huge deal, but multiply that by however many people assume the 8-pack is the better deal because it's a larger pack, and however many other products this occurs with, and it adds up.

 

[LS2JSTS]

Originally Posted By: Bill in Utah
A lot of the items that they USED to add into the mix to determine inflation has been taken out since there IS inflation but that would make certain folks look bad.



Exactly, it's the same thing with unemployment. Each successive admin has reconfigured the way it is calculated to the point where it has little to do with reality.

 

[Mr Nice]

We have lots of buy 1, get one free at Publix.... plus I use coupons from the Sunday paper. I've noticed fruits and vegetables in the produce dept has really gone up in price. If gas hits $4 this summer the prices at the supermarket will really take off.

Quote:
Each successive admin has reconfigured the way it is calculated to the point where it has little to do with reality.

Thats why I say bull [censored] when the unemployment numbers come out and its down to 10 or 11%

 

[friendly_jacek]

Last time we were worried about inflation, high oil prices, and cheap dollar (first part of 2008) we were soon hit by deflation not seen since great depression. Deja vu?

 

[Steve S]

Originally Posted By: buster
Originally Posted By: PandaBear
There are a lot of bad weather across the globe and pushes food prices up significantly, add the USD devaluation you'll see high food price for a while.


Yes, and increased demand from emerging markets.


Most inflation is actually from OPEC and not "printing" money. We don't "print" money. That is a term used prior to 1971. Banks electronically credit/debit accounts. That's it...

I think we are clearly in more of a deflationary environment right now. Just because banks are reserved to the max doesn't mean that money is flowing through the economy yet.


Do we think the banks and insurance companies are investing the bailout $$$ into the stock market?

 

[G-MAN]

I've seen a steady rise over the last three years of the items I typically buy every week at the grocery store. Hence, everytime I hear the "low inflation" baloney on the news I shake my head. Saying the moon is made of cream cheese just don't make it so. Sooner or later people have to say the emperor has no clothes and that dog won't hunt. (How's that for mixing metaphors?)

 

[eljefino]

Originally Posted By: Steve S

Do we think the banks and insurance companies are investing the bailout $$$ into the stock market?


I think they're trying to lure people into more credit cards.

Wife and I have literally gotten 20-30 pieces of mail from Chase since Thanksgiving, trying to get us to bite on a card, and offering $100 if we did it. I finally did, to shut them up.