Posted on 04/24/2021 3:45:52 PM PDT by BenLurkin
Inflation is coming.
Look no further than Coca-Cola and Procter & Gamble sharing plans this week to raise prices to offset rising commodity costs. The costs of raw materials, ranging from lumber to resin, are surging, so companies are taking steps to protect profits.
ING Chief International Economist James Knightley is forecasting consumer prices will continue to rise in the near term and could gain almost 4% by May, compared with the same time a year ago. The consumer price index, which tracks how much U.S. consumers pay for a basket of goods, rose 2.6% in March from the year-ago period, according to the Department of Labor.
Low inventory is helping companies flex their pricing power, he said.
Moody’s analyst Linda Montag said that she doesn’t view higher prices as a competitive advantage because all consumer companies are facing higher commodity costs. Besides Coke and P&G, PepsiCo, Kimberly-Clark, General Mills and J.M. Smucker have addressed raising prices. And consumers might not even notice that they’re paying more for diapers or soda.
“Consumer companies across the board have gotten very savvy about how to implement price increases without just slapping on five to 10% price increases...
(Excerpt) Read more at cnbc.com ...
Short term.
Smaller amounts and same price. That’s what I’m seeing right now over the past year. Tillimook ice cream cut about 1 1/2 inch off the top of the container and Cherrios about 2 1/2 ounces off the weight.
bttt
Yup, noticing similar cuts in a number of products
They can’t keep doing that. When the hamburger is 2” wide, you’ll know there’s something wrong.
I’ve already notice gas is up 50+Cents since Bine was installed
Check lumber prices. We noticed.
Fifty cents. Lucky you. A buck around Reno.
Of course we notice. So sick of these nincompoops thinking we don’t notice.
The Federal Reserve has an excellent record of coming up with solutions for a current crisis which inevitably trigger a future crisis.
That started under Barry the Muslim and never went back, a Half Gallon of Ice Cream has been 60 ounces for a while now
“They can’t keep doing that. When the hamburger is 2” wide, you’ll know there’s something wrong.”
How about toilet paper? Some brands seen like they are down to about 2” plus see through thin.
The day may be coming soon when the petroleum companies switch from gallons at the pump to liters.
In the not too distant future, candy bars are going to shrink down to a singularity, then wink out of existence.
Telescopes, lens and gear are up 10 to 15% over 2019 prices. Computer gear as well.
Been buying in bulk ever since November. Not so much expecting Armageddon as to beat the price increases.
I suppose if they churn (pardon the pun) enough units of ice cream, they may save a bit of money by cutting the size. But the cost of ingredients is generally one of the smallest input costs. Maybe cutting an ounce or two saves them a nickle a unit, give or take. The price of the containers, shipping cartons, plastic pallets, maintenance of filling lines and freezers and freezer trucks, overhead and labor, advertising, weekly discounts etc etc are probably all rising relatively more than the cost of the ingredients in the ice cream.
Most of the ice cream companies have put out the smaller containers. I don’t think they conspire. They all are dealing with the same numbers and are ready to follow the pack.
Side story. 40 years ago, small town, we had 4 gas stations. All the owners had coffee together in one of the restaurants.
Today, one of the gas station owners gets out the binoculars and looks down the street to see what the mega station prices are.
Inflation has been going on for years....you get eight oz of cookies for the price you you used to get sixteen oz....everything no the shelf is like that...
The word of 2021 will be “shrink-flation”.
I’ve noticed gas has gone way up and food prices will be next..
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