And yet the WSJ has a prominent graphic showing milk prices up considerable year over year. And in the article where business owners claim that they are seeing 10-20+ increase in commodity prices I guess they are wrong as well. Don’t forget that one of the fundamentals is costs, and the dollar has been dropping like a rock, causing the price of fuel, fertilizer, feed, and all other things produced oil to go up in price, at least if that rag the WSJ is to be believed. Anyone who believes we can devalue the dollar by 20%, with no increase in wages and not see prices shoot up by a cooresponding amount doesn’t undertand fundamentals.
>>> And in the article where business owners claim that they are seeing 10-20+ increase in commodity prices I guess they are wrong as well.
No, I agree they are seeing higher prices. They just have been unable to pass them along to consumers, which has resulted in narrower margins. Also, the actual cost of food ingredients is relatively small for most final food items sold. Labor, transportation and marketing frequently make up a larger share of the final goods price than does the food going into it. So, even if commodity prices are up 10-20%, grocery food prices are not likely to see those same gains.