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chiefsnorth
03-31-2011, 10:00 AM
Wal-Mart CEO Bill Simon warns of coming inflation
By Jayne O'Donnell, USA TODAY


U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday.

...inflation is "going to be serious," Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY's editorial board. "We're seeing cost increases starting to come through at a pretty rapid rate."

Along with steep increases in raw material costs, John Long, a retail strategist at Kurt Salmon, says labor costs in China and fuel costs for transportation are weighing heavily on retailers. He predicts prices will start increasing at all retailers in June.

"Every single retailer has and is paying more for the items they sell, and retailers will be passing some of these costs along," Long says. "Except for fuel costs, U.S. consumers haven't seen much in the way of inflation for almost a decade, so a broad-based increase in prices will be unprecedented in recent memory."

Consumer prices - or the consumer price index - rose 0.5% in February, the most since mid-2009, largely because of surging food and gasoline prices. Core inflation, which excludes volatile food and energy costs, rose a more modest 0.2%, though that still exceeded estimates.

trndobrd
03-31-2011, 10:14 AM
I'm cool...got my savings invested.

https://secure.asseenontv.com/detail.php?p=293124

Pitt Gorilla
03-31-2011, 10:17 AM
If manufacturing costs in China and fuel shipping costs are rising, maybe we should make some crap here.

chiefsnorth
03-31-2011, 10:19 AM
If manufacturing costs in China and fuel shipping costs are rising, maybe we should make some crap here.

The solution to rising prices is not to increase costs.

Pitt Gorilla
03-31-2011, 10:20 AM
The solution to rising prices is not to increase costs.I get that. I'm just wondering where the tipping point is where US produced goods compete.

FishingRod
03-31-2011, 11:04 AM
I’m a freight Broker. The cost to transport products has skyrocketed over the last few months. This alone will increase the price of everything. Part of this is due to increased fuel prices but, it has basically doubled down because a great many of the smaller trucking companies went belly up over the last couple of years and the Government is piling on regulations further increasing their operating costs. Just one example, I often move loads for a client of mine from the Houston Area to San Diego. In the fall I would pay $1400-$1600 to move this, now carriers want $2600 to $3000.

HonestChieffan
03-31-2011, 11:17 AM
Some big Meat sales going to hit in next week or so.

BucEyedPea
03-31-2011, 11:18 AM
It's not coming it's here.

BucEyedPea
03-31-2011, 11:21 AM
If manufacturing costs in China and fuel shipping costs are rising, maybe we should make some crap here.

Actually, it's a myth that so much manufacturing has declined in the USA. In fact US manufacturing still leads the world in manufacturing output. It's manufacturing employment that has mainly declined.

Job Killing Labor Costs and the Manufacturing Sector (http://mises.org/daily/4969)

BucEyedPea
03-31-2011, 11:22 AM
Some big Meat sales going to hit in next week or so.

Commodities are going to rise. I read rising feed costs is going to really affect meat and poulty as well as bread and milk. Ethanol is a among the factors in such costs too.

HonestChieffan
03-31-2011, 11:28 AM
Commodities are going to rise. I read rising feed costs is going to really affect meat and poulty as well as bread and milk. Ethanol is a among the factors in such costs too.


Much more a factor is supply. A producer cannot set the selling price of a hog or a steer so feed cost cannot be passed on. Rising feed costs impact the producer who can choose to either produce less or feed a shorter time and kill at a lighter weight.

Current inventory of meat, particularly primal beef cuts and pork are high and packers will be dropping prices to get rid of excess inventory over the next couple weeks.

BucEyedPea
03-31-2011, 12:14 PM
Much more a factor is supply.
I was not grading how much of each, just that it is a factor. Supply definitely. Also, third world is rising which will create more demand.

Garcia Bronco
03-31-2011, 01:04 PM
Good. Then maybe it won't be cheaper to produce good in China. Obviously increases in the raw materials is the real gotcha, but at least we could save on transportation.

Hog Farmer
03-31-2011, 01:54 PM
When grain costs soar then meat producers go out of business. That's when the supply effects the price. Unfortunately congress allows meat producers to also own the packing end so these huge corporations sit there year after year making two dollars packing and losing one dollar producing which causes all the family farms to go broke. Our politicians SUCK!

chiefsnorth
03-31-2011, 01:56 PM
Good. Then maybe it won't be cheaper to produce good in China. Obviously increases in the raw materials is the real gotcha, but at least we could save on transportation.

It's not a good thing for the world's largest retailer to say significant iflation is on the way, and that price increases are entering the supply chain at a rapid pace.

Everyone paying more for everything is not an improvement, even if one factor of many is that it's slightly more expensive to do menial manufacturing in China (while still being significantly cheaper than doing menial manufacturing in the US and it will not make an iota of difference in the trade deficit)

Inflation is going to slam the brakes on hiring, it will hurt consumer spending. It will raise the cost of commodities... And the point of the article is, this isn't a hypothesis anymore, it's hitting supply chains now and will be hitting price tags soon.

petegz28
03-31-2011, 08:23 PM
The Ben Bernank says inflation is fine. Therefore inflation is fine. Do not oppose The Ben Bernank.

dirk digler
03-31-2011, 08:26 PM
Some big Meat sales going to hit in next week or so.

meat peeker