Food inflation

Discussion in 'Economics' started by fanews, Apr 7, 2011.

  1. fanews


    price of oil holding at $100/barrel is increasing the cost of truckers who carry food to grocery stores. price for some stuff has up 50%. truckers and grocery stores will have no choice but to pass the cost to consumers.. businesses need to maintain their profit margins or be out of business.

    a 2 L coke cost 1.25 last year now $2 that is real inflation.

    truckers can't hedge there fuel prices especially gas for how long? maximum fuel hedge is only 1 year .
  2. bla bla bla theres no inflation
    why do you needto drink that garbage anyway?
    2litre coke 1,25 last year,you dont drink it anymore
    now theres huge deflation
  3. Although I agree that food inflation is becoming rather apparent I'm currently reading the Walgreen's shopper and they are advertising the 2L coke bottle for 88 cents :D

    Crazy A
  4. fanews


    coke is it.
    life sucks without pop drinks.
    yes i 'need' to drink a pop drinks.

    in france kids drink wine like they drink pop drinks. fine things of living.

    pop drinks is a necessity.

  5. Keep in mind, that those big trucks get about 6 MPG too. A truck will usually drive about 600 miles per day (max allowed for 1 driver) so thats about 100 gallons. When oil goes up $10 per barrel, thats an extra 25 cents per gallon at the pump which means an extra $25 per day that the truck drivers have to pay for gas. Add 10 million truck drivers on the roads and you are talking an extra 91 billion dollars per year that is coming out of truck drivers pockets.
  6. drp7804


    From what I've seen, pretty much every commodity (with the exception of natural gas) has gone up over the past year... some of them substantially. What I'm curious about is what part of that across-the-board price increase is due to the increase in oil prices (higher transportation costs, etc) as opposed to, for example, the decline in the value of the US dollar vs. other currencies. If most/all the commodities are priced in USD, and the dollar is no longer worth as much, then wouldn't it make sense that it takes more dollars to buy the same bushel of wheat?

    In other words, I think I'm seeing two basic theories:

    1. Where oil's price goes, the other commodities go, too. The fabled "speculators" are driving oil up, and, because oil is required for transportation of commodities, etc, all commodities naturally rise in price, as well.


    2. Oil doesn't lead commodity prices, it just roughly parallels them. Commodities have risen in price due to the decline in the value of the dollar. Speculation, while certainly part of commodity trading, doesn't explain why almost all commodities are up vs. this time last year.

    No doubt there are more persuasive/plausible explanations or ideas. I'd be interested to know if anyone has some good stats (or where to go to get good stats) on this stuff. For example, is it possible to know who the "hedgers" are vs. the "speculators"? And how does a trader become either of the two? Can the numbers of each group be tracked to see if the hedgers/speculators ratio is rising/falling, etc?
  7. the1


    Where are you living? Inflation is beginning to take off. Go buy a loaf of bread. It's now higher than it was in 2007 before the bomb went off. If the Fed keeps rates at 0 and QEIII comes on board it's going to get much, much worse. Expect more food riots in less developed countries. Shit, maybe even in this country. Wait til bread hits 6 bucks a loaf and a gallon of gas hits 6 bucks. We're already at 4 for each here.

  8. loaf of bread.. next time you will ask for black caviar,odinary ppl stoped buying bread long time ago,get some pastai nstead,1 loaf of bread =5,50$ 2 bags of pasta (2 kg )=3,30$
    bread i will consume in one day,pasta lasts me 2 weeks
    can you see the difference?
    gasoline? who cares , monthly pass 90$ ,government can afford any gallon price
  9. Bread is still the same price as it was in 2007...(priced in gold anyway)
  10. We are all corn and soy thanks to government subsidies. Corn travels on trains. When the cost to move corn and soy via trains increases, then we will feel it. But guess what...Corn and soy trains are subsidized as well.
    #10     Apr 7, 2011