Dec. 16 (Bloomberg) -- General Mills Inc., the maker of Cheerios cereal and Progresso soup, reported an 8.6 percent gain in second-quarter profit, missing analystsâ projections as costs of raw ingredients increased. http://noir.bloomberg.com/apps/news?pid=20601087&sid=aMOp_r04KbNc&pos=5 You can read in several company reports : raw material prices increased here and there, yet inflation is according to uncle BEN and dream team "tamed" and "subdued". Professional liars.
1) The "bar" was set too "high" again. 2) They need to do more speculative trading in their grain hedging account. :eek:
Is Bubble ben bernanke taking notice of higher prices in raw materials or is he looking away just like he did during the sub prime mortgage crisis. Nope no inflation, another fucking liar that Bubble ben is.
Actually...you are arguing precisely why there is deflation. When inflationary costs can't be passed down to consumers, you have deflation. It creates a dangerous downward spiral for companies as their profit margins fall, consumers continue hanging onto money waiting for even lower prices, and companies can't raise prices to match rising costs. so yes...Bernanke is right...inflation is tame.
They say the haven't passed much of the increased prices of raw materials down to the consumer but all you have to do is take a quick ride to your grocery store and just take a look at the prices of cereal, paper towels, juice and what ever else and you can see prices are sky high. Last week I saw quart of heavy cream for $6.00!!!!!