Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
Denise Moss ·
Mar 18, 2011 at 9:30am
Our current administration wants us to believe there's no inflation. Okay, now remember this is Westside L.A. prices, but my husband reports that this morning the salad bar at the local Whole Foods went from $6.99 a pound to $7.99 a pound. A 14% increase! No wonder the rest of America is heading for Mickey D's for fat-laden two-buck lunches. We can't afford to stay healthy! Besides gasoline prices, what other signs of non-inflation have the rest of the Ricos been experiencing?
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Oct '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
Inflation is being driven by other nations--not us. What should the Fed do, create an eternal recession to compensate for overheating economies like China or Brazil? Does no one remember the inflation surge in 2008--and the subsequent deflation? I well remember how high prices got. We're still not there yet
Our economy is not overheating, at least not yet. The emerging markets will either tame their own inflation, or suffer a "hard landing"--a recession. Either way, global inflation pressures will subside.
There is nothing the Fed can do, short of a European-style "eternal recession" to wait out the excess demand in other nations.
Dec '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
My wife has noticed a steady increase in food prices at the grocery store and there's an article at CNBC (linked below) eluding to your argument as well. Gas prices yesterday were all over the place ranging anywhere from $3.39 per gallon to $3.54. It's hard to gauge at this point what's going on or to plan ahead with any certainty.
http://www.cnbc.com/id/42130406
Jul '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
For the most part, 20% of food prices at retail go to the farmer or fisherman; 80% goes to processing, packaging, transport and marketing. There has been very substantial food commodity price inflation for the past two years - wheat, rice, corn and other basics have risen over 50% - even close to 100% in some categories.
This inflation has been hidden, because processors and retailers found ways to absorb the increases. Now, with the increased costs of energy added in, they finally have to pass the inflation along.
Think of inflation not as a rise in prices, but as a loss in the value of the dollar. When you look at it this way, two key inflation indicators are gold and silver.
Silver has risen from $10 an ounce to $35 over two years - a 250% increase. Gold has risen 55% over the same period.
May '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
uhhh...gas prices anyone.... my last fill-up was 4.07/gallon
May '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
From my own experience, the price of a quart of milk in my neighborhood has gone from $1.00 to $1.25.
May '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
Engage in open market sales and raise interest rates. We can thank the Fed's loose monetary policy for plunging us into the 08-09 recession.
Sep '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
My wife has been commented about food prices going up. Only a few months ago we could get a gallon of milk on sale for $.99. Now it's running about $2.00.
Sep '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
Houses that sold for over 500k are going for under 300K and look as if they are going lower, I-PAD 2, Lighter thinner, more power and functionality, lower price. I could go on but this is not 1976. Most things priced in gold are unchanged many are lower.
Feb '11
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
One thing which everybody seems to overlook, is how all forms of grocery products have not only decreased in size and quanity, but also in how much smaller the products are within the packaging. These are examples of the hidden inflation which the govt. completely overlooks and discounts via CPI, etc.
Oct '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
Michael Labeit:
Engage in open market sales and raise interest rates. We can thank the Fed's loose monetary policy for plunging us into the 08-09 recession. · Mar 18 at 10:44am
And what will interest rates do for an external-driven inflation? Can we control Brazil, or China, or India? Monetary policy wasn't loose in 2008--we'd been tightening for three or four years!
Global capital flows cancelled out the tightening. Basically, foreigners were lured by our budget deficits; the only way to prevent the bubble what have been for Congress to cut spending. If raising short-term interest rates simply attracts more capital to drive long-term rates lower, monetary policy has stopped working. This is what happened.
Higher short-term rates can actually lower long-term rates, if international investors flood you with money.
Oct '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
Not that interest rates shouldn't be mildly higher--say, 1%. But credit demand is simply not there to justify significant tightening, and all it would accomplish is sucking in more foreign money, lowering long-term rates even more, and giving a blank check to Congress to spend, spend, spend.
Jul '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
How often do people buy houses? How often do they buy iPads? And what is the true utility value of having a more powerful iPad?
True, food prices in terms of gold have declined. But gold is not a medium of exchange - the dollar is. And in terms of dollars, global food prices have risen 25% in the past year.
Dec '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
When we look at "food" prices, we have to be discerning. Large grocery chains have been doing everything they can to keep some, main staples down, though they are creeping up. And, as mentioned, container sizes have been reduced.
However, you can see shocking increases in non-staples, or in the more luxury items. For example, decent steaks have risen by 100%, on average, in the past year; with rare "sale" exceptions, what I could occasionally find at near $6/pound a year ago is now $11 to $12/pound. Hamburger, however, I can still get for around $3/pound.
I got a real shock last week when my beloved added Whipping Cream to my list, for birthday cake icing. The pint container I picked up was over $8. I dropped that and picked up a half pint for just over $5, with which she made do! Grocery stores are doing what they can to shift the increases to items that most customers can do without.
Jul '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
I've noticed the inflation of many waistlines despite the higher price of food.
Mar '11
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
My name is Hilary Maler and I am the Associate Marketing Coordinator at Whole Foods Market in the Southern Pacific region. Whole Foods Market selects our products based on the highest standards in the business and we work hard to ensure our prices are competitive so that our shoppers can get more of the good stuff for less. In addition to many budget-friendly items featured throughout the store, on Wednesdays, customers can enjoy our prepared foods section, which features a wide selection of both cold and hot options, for only $5.99 a pound. The regular price of $7.99 a pound has not been increased. We hope that you will be able to take advantage of the Wednesday discount and other deals.
Jul '10
Re: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
Welcome, Hilary. I admire Whole Foods - and your President and founder.
Grocery is a tough, hyper-competitive business. I'd be the last person to accuse any grocer of price-gouging; that simply doesn't work. Your company has found a better way to realize favorable margins; provide a congenial environment featuring high-quality products for which consumers are willing to pay a premium.
By the way, as a human resources guy, I'd give Whole Foods extra kudos - your people are obviously happy in their work and that's abundantly apparent in the quality of their customer service. Just one small example: any time I've asked for help finding an item, your folks haven't just pointed the way, they immediately walk me through the store, directly to my selection. That kind of service doesn't happen by accident.
Keep up the good work.
Edited on Mar 18, 2011 at 10:17pmRe: Pull Out those "Whip Inflation Now" Buttons...It's 1976 All Over Again!
Hilary,
Thank you for responding. And reading Ricochet! I didn't mean to single you out for the obvious rising costs of almost all commodities. It was just an example. As Kenneth pointed out above, you are a well-run company and always a welcome contributor to a neighborhood.