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Here’s what to blame for the spike in grocery prices, according to a New York Fed analysis (barf)
MarketWatch ^ | Aug 26, 2024 | Steve Goldstein

Posted on 08/26/2024 8:26:09 PM PDT by where's_the_Outrage?

Stocks, bonds, gold and bitcoin — pretty much everything but the U.S. dollar — soared Friday when Fed Chair Jerome Powell not only declared that the time has come for policy to adjust but that further increases in the unemployment rate would be unwelcome. Markets looked set for a calmer session Monday, a period of tranquillity that may run until Nvidia reports its results on Wednesday.

In the meantime, it’s worth looking at food prices, which have become a potent political issue in the presidential campaign. Vice President Kamala Harris outlined a plan, still lacking many concrete details, that would ban corporate price gouging on food and groceries. Part of the food-prices issue also can be seen in an antitrust trial, beginning Monday, over Kroger’s planned takeover of rival grocery-store chain Albertson’s A New York Fed analysis — written ahead of the Harris proposal — said rising profit margins aren’t really to blame.

The analysis, written by economic research advisor Thomas Klitgaard, did acknowledge that margins have gone up. Citing government data, he said margins at food and beverage retail stores have from 2.9% in 2019 to 4.4% in 2023. But that’s equivalent to roughly $10 billion of a $100 billion increase in revenue, he noted.

(Excerpt) Read more at msn.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: economy; food; foodcosts; fuel; groceryprices; grocerystore; inflation; transport
IMHO the main cause of food price increases is fuel costs. Bidenomics has done all it could to increase oil costs which in turn increased food costs.
1 posted on 08/26/2024 8:26:09 PM PDT by where's_the_Outrage?
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To: where's_the_Outrage?

Bunch of economic idiots. They have no clue that our economy is based on fuel prices. I guess they have never seen how much diesel is used in farming and trucking food to the grocery stores.


2 posted on 08/26/2024 8:34:02 PM PDT by Texas resident (Que Mala= Bad Juju.)
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To: where's_the_Outrage?

“”Vice President Kamala Harris outlined a plan””

??

What have they been doing for 4 years?


3 posted on 08/26/2024 8:38:03 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: where's_the_Outrage?

Correct Answer:

PRINTING TOO MUCH MONEY!

“Inflation is always and everywhere a monetary phenomenon.” - Milton Friedman (from memory ...)


4 posted on 08/26/2024 8:38:32 PM PDT by Uncle Miltie (islam is conquering the world. Will YOU do ANYTHING to try to stop it?)
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To: where's_the_Outrage?

“... the main cause of food price increases is fuel costs.”

Of course you’re right. Higher energy costs makes the cost of *everything* higher.


5 posted on 08/26/2024 8:39:09 PM PDT by Theo (FReeping since 1997 ... drain the swamp.)
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To: where's_the_Outrage?
“Citing government data, he said…”

Did Klitgaard cite government policy?

Government Policy is a big study in economics.

6 posted on 08/26/2024 8:44:21 PM PDT by Deaf Smith (When a Texan takes his chances, chances will be taken that's for sure.)
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To: where's_the_Outrage?

+1

Buy-DUNG’s war on American energy was really a war on American industry—including agribusiness—and ultimately a war on all Americans.

Meanwhile Russia gets rich selling oil to China.


7 posted on 08/26/2024 8:46:43 PM PDT by lightman (I am a binary Trinitarian. Deal with it!)
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To: where's_the_Outrage?

But you know what destroys that theory? Beer.
I’ve seen the price of many staple items go up by 20 to 50% or more - yet the price of a 12 pack or case of beer hasn’t changed since before the pandemic. Unless it’s Bud Light, which they’re still trying to give away. And beer is heavy and has to be transported by regional distributors not shipped in bulk to distribution centers like most commodity items so transportation cost as a percentage of the total product price is higher than most items.


8 posted on 08/26/2024 9:09:25 PM PDT by bigbob
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To: bigbob

I can dispute that. A keg of Sam Adams is almost $200 these days, several years ago it was around $150.


9 posted on 08/26/2024 9:15:59 PM PDT by where's_the_Outrage? (Drain the Swamp. Build the Wall.)
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To: Uncle Miltie

You are 100% correct. All that debt got monetized and dumped onto the streets of America and then it was exported. That’s why eggs meat , the basics and fuel soared globally.


10 posted on 08/27/2024 3:21:50 AM PDT by himno hero (had'nff )
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To: himno hero

When Dems claim we have the lowest inflation in the world that is because we export OUR inflation. Other countries are not happy. If they ever figure out how to dump the dollar as the reserve currency, we’re in trouble. Our arrogance is unbelievably stupid.


11 posted on 08/27/2024 4:13:30 AM PDT by griswold3 ( Robespierre and Pol Pot were “unburdened by what has been” Harris the "Year Zero" candidate)
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To: himno hero

When Dems claim we have the lowest inflation in the world that is because we export OUR inflation. Other countries are not happy. If they ever figure out how to dump the dollar as the reserve currency, we’re in trouble. Our arrogance is unbelievably stupid.


12 posted on 08/27/2024 4:13:58 AM PDT by griswold3 ( Robespierre and Pol Pot were “unburdened by what has been” Harris the "Year Zero" candidate)
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To: griswold3

Dumping the dollar is not a simple 1,2,3 process. There’s a multitude of reasons why the American dollar soared to prominence as the preferred unit of exchange.

The bric’s people are only a pool of Marxist Muslims, all bitter.

They’re trying to elevate theirselves which is good, but it’s ALL on American technologies. Much of it’s old and outdated, but it works.

Not a one of them created the soil necessary for the innovation and progress that technology can provide.

America and her Christian Western European allies have a long history rooted in the development of patents and patent law back in the 1400’s.


13 posted on 08/27/2024 4:30:02 AM PDT by himno hero (had'nff )
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To: Uncle Miltie

Yep, the COVID “stimulus” under the past two presidents was a massive money print.


14 posted on 08/27/2024 5:30:09 AM PDT by iluvschnitzle
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; BraveMan; cardinal4; ...

15 posted on 08/27/2024 6:52:52 AM PDT by SunkenCiv (Putin should skip ahead to where he kills himself in the bunker.)
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To: where's_the_Outrage?

We’re a nation of logistics.

Our military is the best because we have the best logistics capability of any military in the world.

Our food selection and prices were (are?) the best because we have the best logistics (shipping/receiving/warehousing) of any country in the world.

Especially for our size.

The cost of fuel, oil, insurance, maintenance, etc. all go up - that means EVERYTHING goes up.


16 posted on 08/27/2024 6:56:21 AM PDT by ro_dreaming (Who knew "Idiocracy", "1984", "Enemy of the State", and "Person of Interest" would be non-fiction?)
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To: bigbob

My dad drinks a 30 pack of Keystone Light every 5-6 days. The price has gone up from around $23.00 to over $32.00 per 30.

And that’s for Keystone Light.

Imagine if he drank real beer like a microbrew or whatever. Heck, St. Arnold’s, the oldest independent brewery in Texas, has their prices gone up about the same percentage as Keystone.


17 posted on 08/27/2024 6:58:42 AM PDT by ro_dreaming (Who knew "Idiocracy", "1984", "Enemy of the State", and "Person of Interest" would be non-fiction?)
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To: where's_the_Outrage?

Klitgaard didn’t examine why commodity prices went up so much

Avoiding the oilephant in the room.


18 posted on 08/27/2024 8:50:46 AM PDT by rwa265
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