Me too. And then there’s the incredible shrinking package phenomenon. The price stays the same. But you’re getting less and less product.
Posted on 02/16/2021 6:01:16 AM PST by bert
What will be the results of a Pelosi/Biden government?
Many think there will be inflation. Milton Friedman taught us that “Inflation is always and everywhere a monetary phenomenon, in the sense that it cannot occur without a more rapid increase in the quantity of money than in output.” The $2Trillion Covid relief plus the !5% minimum wage plus the forgiveness of college loans all pump money into the economy.
Those actions are the very definition of monetary phenomena.
The Bureau of Economic Analysis keeps us informed on the inflation rate but fails in one respect. The inflation information provided leaves out food. So, in the era of Pelosi/Biden induced inflation, bert has developed a basket of 20 common food products and will track prices and compute the inflation rate on the basket total and each individual item at a one month interval.
The reason given for excluding food in the BEA inflation figure is because there are so many variables that effect prices that monetary inflation gets lost in the shuffle. So, there will be no attempt to correct for other variables.
One we know that is already happening is China. China is in terrible food shape. Crop failure, massive flooding, swine disease and poor management of stock piles have forced China to import phenomenally large quantities of soy beans and corn. Brazil is sold out of soy beans. American farmers will pick up all he slack. So, there will be a large China induced food price inflation.
Being bert and being conservative, I choose to ignore China and blame all the food price increases on Pelosi/Biden
The first monthly food inflation presentation is posted below. There is no inflation noted for February
Will it happen? As President Trump was fond of saying……..We’ll see
| Item Cost | Measure | January | February | Increase |
|---|---|---|---|---|
| Bread | 2# Loaf | $1.69 | $1.69 | 0% |
| Eggs | 1 dozen | $$1.69 | $1.69 | 0% |
| Bacon | 12 ounces | $4.99 | $4.99 | 0% |
| Ground Round | 1 pound pkg | $4.19 | $4.19 | 0% |
| Oscar Mayer Hot Dogs | 10 count | $2.99 | $2.99 | 0% |
| Saltine Crackers | 1 Box | $1.49 | $1.49 | 0% |
| Cambell’s Tomato Soup | Can | $1.00 | $1.00 | 0% |
| Le Suer Green Peas | Can | $1.89 | $1.89 | 0% |
| Campbell’s Pork and Beans | Can | $0.69 | $0.69 | 0% |
| Kellogg’s Frosted Flakes | 13.5 oz Box | $2.89 | $1.00 | 1% |
| Pic Sweet Frozen Corn | 28 Oz | $3.29 | $3.29 | 1% |
| Holly Farms Chicken Breast | Per Pound | $1.99 | $1.99 | 0% |
| New York Select Strip | per pound | $11.99 | $11.99 | 0% |
| Milk 2% | per Gallon | $1.99 | $1.99 | 0% |
| Water | 6 pack | $3.99 | $3.99 | 0% |
| Maxwell House Coffee | 10.5 Oz | $3.99 | $3.99 | 1% |
| Coca Cola | 12- 12 Oz | $5.99 | $5.99 | 0% |
| Budweiser Beer | 6 pack 12 Oz | $7.29 | $7.29 | 0% |
| McDonalds Big Mac | Each | $4.29 | $4.29 | 0% |
| Basket Total | $72 |
Yes, there will be MASSIVE price inflation, but I blame it on the lockdowns and the subsequent stimuluses.
Where have they been in recent years? Food has skyrocketed in the last years.
As the article noted, food is not included in the calculation of core inflation. Energy costs are also not included.
So as food prices rise and your heating bills go up, just say to yourself “At least there is no inflation.” That should make you feel better.
Do you have a comparison Feb ‘20 with Feb ‘21. I know I’m paying more.
For reference, $1 in 1970 would be about $6.55 today.
Milk: $1.32 per gallon
Eggs: 60¢ per dozen
Bread: 70¢
Bacon: .85-.95¢ per pound
For me it’s lumber that has skyrocketed. A couple of months into the lockdown I decided it was time to get chickens again, they’re laying about 14 eggs a day so if food goes nuts, well, we have a good source of protein.
Me too. And then there’s the incredible shrinking package phenomenon. The price stays the same. But you’re getting less and less product.
It's here (not coming) and getting worse. $11.99 for strip steak? Only if I go early and buy the, "managers special" sell by date was yesterday, package.
Package size has shrunk in selected items.
Remember when a half-gallon of orange juice was 64 ounces? Now its 52.
Remember when yogurt cups were 8 ounces (that's way back)? More recently, six? And now, they've gone metric, so they're 150 ml, or 5.3 ounces.
Not only that, but the packaging itself is getting worse. Thinner, cheaper, flimsier.
The only ting that has gotten bigger is the toilet paper cardboard "roll" on the inside. The diameter keeps increasing to the size of a wrapping paper roll.
Shrinkage has sure occurred at the local Fuzzy’s, what with enchiladas getting shorter.
After the first two COVID checks arrived, I noticed that almost none of the food items I buy on a regular basis went on sale for several months.
Since I always buy on sale, and in large quantities, food inflation for me means nothing on sale.
The regular shelf price of almost everything I buy did not change - just no sale prices.
Not only has lumber skyrocketed, it’s often very poor quality. I needed to build shelves not long ago. I went through more than a hundred 2x4s to find 8 that were straight enough and not cracked.
But the box is still the same size.....
Overpriced a lot on water, coke, steak, and corn.
We began this journey when GW Bush first printed stimulus checks. Obama picked up the pace and then Nancy/Trump put it in cruise control.
Still want your $2000 check?
I’ve heard that before that lumber skyrocketed. It’s strange to see Radom different thing rise and others rise but not to the extent of some things. Good luck with the chickens.
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