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News & Current Events Discuss Wholesale prices spike on steep rise in food, oil at the General Forum; Originally Posted by lizzie In addition to this not-so-good news, I expect a significant rise in building supply prices, as ...

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Old 03-16-2011, 07:58 PM
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Default Re: Wholesale prices spike on steep rise in food, oil

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Originally Posted by lizzie View Post
In addition to this not-so-good news, I expect a significant rise in building supply prices, as Japan will require alot of materials for rebuilding.
I work for company that supplies the wood window and door industry with the wood part of windows and doors and we're already seeing an increase in orders. Between the flooding back east and Japan, we're looking at a pretty good couple of years coming up.
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Old 03-16-2011, 08:50 PM
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Default Re: Wholesale prices spike on steep rise in food, oil

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Why the big change????

I have a candle burning in my office and when someone talks out their ass around open flames...well, sometimes bad things happen.

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Old 03-17-2011, 10:19 AM
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Default Re: Wholesale prices spike on steep rise in food, oil

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I'm not sure we're on the same debate page. You seem to be making the point that food prices could continue to go up disproportionally to overall inflation. Maybe they will, maybe they won't. It's all speculation right now. I'm trying to make the point that overall moderate inflation is good for the economy. Inflation as a rule includes higher food prices.
My point is that food and fuel ALREADY HAVE gone up disproportionately, and you are still stuck on the 'maybe they might'. Moderate inflation being a positive only applies when it's across the board moderate, or on goods other than necessities, not as an 'average' when screwing the necessities end and therefore damaging lower to mid income.

'Moderate inflation' as a positive also only applies when other economic circumstances are not applying a downward pressure to such a detrimental level, which most of those links also discuss.

You're stuck on one theory, that has already been negatated. It is what the OP was about, and I've been trying to make that clear to you.
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Old 03-17-2011, 12:11 PM
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Default Re: Wholesale prices spike on steep rise in food, oil

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My point is that food and fuel ALREADY HAVE gone up disproportionately, and you are still stuck on the 'maybe they might'. Moderate inflation being a positive only applies when it's across the board moderate, or on goods other than necessities, not as an 'average' when screwing the necessities end and therefore damaging lower to mid income.

'Moderate inflation' as a positive also only applies when other economic circumstances are not applying a downward pressure to such a detrimental level, which most of those links also discuss.

You're stuck on one theory, that has already been negatated. It is what the OP was about, and I've been trying to make that clear to you.
To be clear, I acknowledged that food prices have risen disproportionately. I merely stated that it is unknown whether they will continue to do so. So far, we haven't seen sharp food prices where I live in the mid-west. If your food budget is $500 a month and prices have risen 1.8 percent, (current level) that's $9 a month. If that amount is what's keeping you from doing any discretionary spending, you don't have any money to spend on extras in the first place. Lower income people are who are affected most, but they are not who drives our economy.

You seem to have the belief that rising food prices will keep the economy from growing. Perhaps it has a small impact on some. But even if it does, it's like 3 steps forward, 1 step back. That's better than 0 steps forward and 0 steps back. My point is that inflation will strengthen our economy despite higher food prices. To think that food prices will go insanely high to where we are spending $5 for a loaf of bread and $10 for a gallon of milk, then you would have an absolute solid point. I just don't see that happening. I guess it could happen if blight strikes across America, but what are the odds of that?

Prices go up and they go down. I remember several years back paying $4 a gal for milk. I paid $2.36 yesterday. In the past, I've paid $8-$9 a lb for KC strip steak. I paid $4.99 yesterday. I won't bore you with my entire shopping list, but everything I bought, I have at one time paid more for. (as well as less) The market fluctuates. We are currently in an upward flux in food prices. Later it will flux back down. In the meantime, the economy will be stimulated by overall inflation. As long as we are moving forward, the temporary pinch on the bottom rung of income earners will have to be tolerated.
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Old 03-17-2011, 01:07 PM
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Default Re: Wholesale prices spike on steep rise in food, oil

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Originally Posted by sunwestdog View Post
To be clear, I acknowledged that food prices have risen disproportionately. I merely stated that it is unknown whether they will continue to do so. So far, we haven't seen sharp food prices where I live in the mid-west. If your food budget is $500 a month and prices have risen 1.8 percent, (current level) that's $9 a month. If that amount is what's keeping you from doing any discretionary spending, you don't have any money to spend on extras in the first place. Lower income people are who are affected most, but they are not who drives our economy.

You seem to have the belief that rising food prices will keep the economy from growing. Perhaps it has a small impact on some. But even if it does, it's like 3 steps forward, 1 step back. That's better than 0 steps forward and 0 steps back. My point is that inflation will strengthen our economy despite higher food prices. To think that food prices will go insanely high to where we are spending $5 for a loaf of bread and $10 for a gallon of milk, then you would have an absolute solid point. I just don't see that happening. I guess it could happen if blight strikes across America, but what are the odds of that?

Prices go up and they go down. I remember several years back paying $4 a gal for milk. I paid $2.36 yesterday. In the past, I've paid $8-$9 a lb for KC strip steak. I paid $4.99 yesterday. I won't bore you with my entire shopping list, but everything I bought, I have at one time paid more for. (as well as less) The market fluctuates. We are currently in an upward flux in food prices. Later it will flux back down. In the meantime, the economy will be stimulated by overall inflation. As long as we are moving forward, the temporary pinch on the bottom rung of income earners will have to be tolerated.

Food prices soared 3.9 percent last month,

Directly from the OP...........not sure where u got your imagianry numbers
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Old 03-17-2011, 05:39 PM
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Default Re: Wholesale prices spike on steep rise in food, oil

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Food prices soared 3.9 percent last month,

Directly from the OP...........not sure where u got your imagianry numbers
I posted this link a couple pages back. It gives the total inflation numbers over the past year for food products as 1.8%.
Who Inflation Hurts the Most - Rick Newman (usnews.com)

3.9 percent is a snapshot of a single month's spike. 1.8 represents the bigger picture. Prices go up, prices go down. Even at 3.9 percent, a $500 dollar monthly grocery bill goes up $19.50. If that amount of money is going to force you to tighten your belt, then you weren't a discretionary spender in the first place and your budget tightening will have minimal affect of the economy as a whole.

Bottom line is, it sucks to have to pay more for groceries, but that doesn't diminish the fact that inflation is good for the economy and food prices will go back down, right along with oil. Temporary pain for some individuals, huge gain for the national economy as a whole. You do want a better economy and jobs to come back...don't you? Well, this is just part of the process.
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