They say no inflation, yet a Turkey dinner is up 11%

Discussion in 'Wall St. News' started by S2007S, Nov 20, 2007.

  1. S2007S

    S2007S

    11% more, Inflation is in check, right?




    Gas costs more. Corn costs more.

    So it shouldn't be a huge surprise that your Thanksgiving also will set you back more.

    The average cost of a typical American Thanksgiving dinner for 10 hit $42.26 this year -- an 11 percent increase over last year's prices for the same dinner of turkey, stuffing, cranberries, pumpkin pie and all the trimmings, according to the American Farm Bureau Federation.
     
  2. And housing costs less. Bonds are pricing in deflation thanks to economic softness, not inflation.
     
  3. 1. They didn't "count" housing in the inflation numbers while it was increasing, so it shouldn't be counted as it softens.

    2. There are other more likely explanations for low bond yields.
     
  4. Yea, the "market has it wrong", my favorite explanation for everything :)
     
  5. I've outsourced the cranberries and pie.
     
  6. The american consumer is very robust.
     
  7. "robust" they may be. Doesn't matter, it's still inflation.

    The Zimbabwean consumer is very robust too, doesn't mean 500% inflation ain't a problem.
     
  8. poyayan

    poyayan

    Fed said...

    "On the growth side, the Fed said it believes that business growth will slow next year, with the gross domestic product (GDP) coming in between 1.8 percent and 2.5 percent."

    "Overall inflation should ebb next year to between a 1.8 percent and 2.1 percent increase. Inflation should moderate further in 2009 and 2010, the Fed said."

    So.....1.8% growth and 1.8% inflation. We are right at 0% growth in real dollar term. Oh, we still need to pay tax on that 1.8% growth by the way. With tax factor in, we are in recession.

    ...and this is Fed's number. I don't want to know main street's number.