Many commodities are depressed, yet I find that the grocery bills are as high as ever (if not higher). What is the root cause of this? Some assets and commodities are depressed whiles others are getting inflated...
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High Food Costs: Inflation or Manipulation?
- Thread starter short&naked
- Start date
You do realize... that when grocery bills get lower when buying the same food, that means deflation, right? Given that deflation hasn't occured in some decades to say the least, there hasn't been a case in recent memory that your grocery bill got lower (aside from temporary sales).
End consumer prices are not directly correlated with input commodities prices.
End consumer prices are not directly correlated with input commodities prices.
Christ... if you actually read what I wrote... higher input prices results in higher end product price. lower input price doesn't equal to lower output price. Hence, not directly correlated.
Price levels don't revert to means. Otherwise, we wouldn't have inflation.
Price levels don't revert to means. Otherwise, we wouldn't have inflation.
Quote from jprad:
Have you ever even shopped at a grocery store?
S&N is spot on. Food started ticking higher ever since fuel and fertilizer costs starting going up.
No reversion to the mean in sight.
Quote from sjfan:
Christ... if you actually read what I wrote... higher input prices results in higher end product price. lower input price doesn't equal to lower output price. Hence, not directly correlated.
Price levels don't revert to means. Otherwise, we wouldn't have inflation.
Not only is that not what you wrote, you've now managed to contradict what you did write.
If rising input costs contribute to higher food prices then there is a correlation, if only in one direction.