Friday, February 3, 2012

Very Scary Price Inflation Indications

Here's some very scary anecdotal evidence on price direction from the ISM's release today:
Commodities Up in Price

Airfares; Beef; Chemical Products; Chicken; Crab; Coffee (2); #1 Diesel Fuel (2); #2 Diesel Fuel (3); Fuel; Gasoline; Medical Supplies (2); Paper; Petroleum Based Products; Resin Based Products; Vehicles; and Wire.

Commodities Down in Price

Corrugated Cartons is the only commodity reported down in price.
Commodities in Short Supply

Crab; #2 Diesel Fuel (2); Fiber Cable; and Pharmaceuticals.

Note: The number of consecutive months the commodity is listed is indicated after each item.
Bottom line, If you don't fly, eat beef or chicken, drink coffee, use gasoline, and just sit on corrugated cartons, prices aren't going up for you.

The price inflation tsunami is coming.


  1. Just my luck, my two biggest budget items are diesel and coffee!!
    I'm REALLY screwed if beer goes up!!!

    Oh, well, more sail, less motor...

  2. Gasoline prices at ATH, while demand shrinks back to 2001 levels.

  3. That's the real reason Michelle Obama is trying to make school lunches "healthier": to keep the costs down by feeding kids gruel made out of liquified corrugated cartons instead of paying for the increasing costs of cheese, beef, chicken, etc.

    There's no inflation, as long as you buy only ipads and corrugated cartons that you use for food, heating fuel, and to run your steam engine car, and steam-powered generators. I don't know why everyone is so upset. And clothes? Who needs clothes? Just hang out at one of the many clothing-optional occupy movements around the globe.

  4. Definitely got a few laughs outta me there, anon 3:29.

  5. I recall stories from a year or two ago about eateries in China being caught blending cardboard into their food to make it stretch further.

  6. When beef started climbing about a year or so ago, I turned to my old reliable-- chicken. Soon I learned that the rest of the market was onto me, and they also began purchasing chicken in greater quantities (prices soon followed the trend). Normally, considering a free market-based money, this would mean that beef prices would clear at a lower level. But no!!! Instead, not only have beef prices continued their rise, but chicken prices are now nipping at beef's heels.

    Needless to say, I am eating a lot of pork chops, bacon and ham these days, but I expect that they also will climb in the near future, as well. Damned you monetary inflation, all you do is make me search for a bargain only to find that everybody else followed me there and we all got screwed in the end. At this point I am only talking about meat: who knows the distortions and wastes of capital that have now become a reality as a result of money printing?

    Just stop!!! Please!!!

  7. Joseph Fetz: If the inflation kicks up fierce, you could always go with legumes and whey powder for your protein needs.

  8. Due to the bad economy, dairies have been reducing their herds for the last few years, and beefing heifers instead of letting them become new milk cows. Looks like that process has finally come to an end, and the downward pressure on beef prices is ending, too.