Why The Federal Reserve Can’t Solve Food Price Inflation

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Price inflation has not slowed considerably because many large companies continue to raise prices higher than cost increases.

Placer.ai. Comparative sales at Walmart, Kroger, Albertsons and Ahold, which account for over 45% of U.S. grocery sales, are up but still well under the rate of price inflation, so effectively negative. Like much of the industry, their unit comps are even lower, meaning a recession is already here for the sector. This hasn’t stopped retail oligopolies from passing along billions in shareholder buybacks.

But comp’s are grocers’ holy grail. Once growth slows, maintaining profitability then becomes a matter of managing expenses, such as inventories and payroll. This could mean more out of stocks and layoffs. According to FMI,of grocers peaked in 2020 at 3.5% and 3.2% in 2021, a 30% jump over the 10 year average, but those days are gone. Profitability, a matter of churning successively more tonnage through the same 4 walls every year, will be an even tougher challenge for the foreseeable future.

 

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I THOUGHT THEY COULD NOT SOLVE THEMSELVES?

You need to lower the price of diesel and corn to lower the price of food. Bidens brilliant idea of using more ethanol is just another mistake in a long line of mistakes that are starting to look like an intentional pattern.

Corporate greed.

The Fed & Treasury opened the door with BS transitory claims. We were supposed to learn something from the Carter administration, apparently the finance geniuses forgot them.

How does an increase in the money supply affect demand? How does demand affect prices? Who controls the money supply? The Fed isn't responsible for price inflation? Got it 🤔

But not their wages

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Fed officials reinforce stern message of slowing inflation by higher interest ratesInflation is still “stubbornly high,” and the Federal Reserve will raise interest rates as much as necessary to bring price pressures back under control, a senior central bank official said on Friday. But they won't dare raise reserve requirements for banks, which are currently 0.0% Show me where forward inflation is high? There is no data to support this conclusion. The Fed governors better start wearing bullet proof vests.
Source: MarketWatch - 🏆 3. / 97 Read more »