Beverage Digest reported earlier this month that Pepsi was notifying retailers of price increases of 3 percent to 5 percent between July 10 and around Labor Day.
Of course, this, I'm sure will not influence the views of the deflationistas:
Larry Summers, former Harvard President and recent top economic advisor to President Obama, recently wrote:
The underlying rate of inflation is still trending downwards...Paul Krugman wrote late last year:
There’s really nothing here to shake my view that deflation, not inflation, is the threat.(ht#54)
If commodity prices are already having tangential effects like this, what can be expected to happen with regard to the excess reserves that banks are now sitting on? Even if debasement is the goal, it seems like we are playing chicken with the fate of the dollar for the sake of political expediency...
ReplyDeleteIf we ended the high sugar tariffs that protect a very small industry and keep sugar prices really high for Americans, we could actually have GOOD Coke like we do here in Mexico made with real sugar and it would be cheaper too.
ReplyDeleteI currently pay $20 pesos ($1.85) for a THREE liter bottle of Coke (real sugar, no corn syrup).
Difster, you know what is horrible about "real sugar" in american soft drinks? Here in the states, we have a product called "Pepsi Throwback" (sure, it isn't Coca~Cola), which is the original formula of Pepsi made with real sugar, but it costs 50+% more. Yeah, it is pretty sad that soda with sugar has become a designer drink here in the states.
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