Did you know that gas prices are down 47% since May?
- Thread starter Max E.
- Start date
You are so lazy.
http://www.usnews.com/news/world/ar...ply?s_cid=rss:global-food-prices-down-sharply
Of course, they'll resume their upward march, but not for the nonsense reasons you give.
It's not my job to go out and prove your points. I do plenty on points of my own (which you rarely refute).
Just because commodities come down on the market does not make food in the grocery store cheaper. As I have stated many times, I work in an FMCG company that has over 50 some brands we all know in the grocery store. We have taken over 40 price increases in the last year and a half, and not one price decrease. The reason? It is extremely difficult to take price with a grocery customer, and we do not believe lower input costs will last.
So all of our price increases, and those of the many competitors we have are completely in place. Your UN think tank doesn't capture any of that.
Here you go, El Matador. Don't just take my word for it. Go check out the government's food price index:
http://www.bls.gov/cpi/cpid1205.pdf
Pay close attention to "FOOD" and "FOOD AT HOME".
Notice all the "declines". Oops.
http://www.bls.gov/cpi/cpid1205.pdf
Pay close attention to "FOOD" and "FOOD AT HOME".
Notice all the "declines". Oops.
With each post you reveal your incredible lack of depth of understanding anything related to economics.
Food prices aren't able to decline as rapidly as energy prices. Food companies aren't meant to deal with massive volatility in commodity prices. They take price moves annually, sometimes every few years once import costs reach a margin threshold. Once they take price, they almost never lower price. In my 17 or so years in the food/pharma industry, I've only ever seen one significant price decline taken, and that was in 2009 when commodities collapsed completely. At that point the customers were demanding price declines to compensate for increased manufacturer margins. And even then, most of these price declines were actually dialed back with extra trade promotion dollars to affect "temporary price declines".
Gas stations can simply adjust gas prices based on the price they pay from suppliers. It's very fluid. Food prices are here to stay.
So Fed printing can quickly raise energy prices based on the market price of crude. It can take much longer to raise food prices as those input costs have to flow through the manufacturing system before they can get to the consumer level of the grocery store shelf. Same too on the down side when the Fed decides to stop printing or (God forbid) tighten monetary policy. But the downside on food prices is far more limited and far, far slower to materialize.
Too much for you to grasp?
Only because the economy sucks. Cheap gas with no job is not so cheap