Is Inflation Here?

[I AM NOT THAT GUY 5,715]

Walmart Warns of Rising Prices

When the CEO of Walmart says that inflation is coming, we best be on the lookout. As head of America's largest retailer, Bill Simon is in a unique place to see inflation traveling all the way through the supply chain.

Walmart's (WMT) advanced computer systems are the some of the largest and most advanced computer systems in the world -- on par with computers the U.S. military uses. Every product and purchase is tracked to get stores resupplied as quickly as possible, usually just in time. As a retailer, Walmart is going to be keeping track of costs and profit margins very closely. Managers all across the company are carefully watching the reports.

Walmart, with its bulk-buying ability, has more bargaining muscle than other retailers. It has the ability to employ or idle entire factories around the world, and is therefore in a good position to keep prices low. But ultimately, even the buying power of Walmart has its limits.

Given the recent monetization of U.S. debt, the weak U.S. dollar and the rising oil prices ($107+ a barrel), inflation should be expected. The administration is pursuing a weaker U.S. dollar in order to make American exports more competitive. This also has the effect of making foreign imports and raw materials more expensive. Eventually, these prices increases will work through to the final consumers.

How are the prices in your neighborhood? Are you seeing inflation in your town already?

http://www.bloggingstocks.com/2011/04/01/is-inflation-here-walmart-warns-of-rising-prices/

[Obama 2012 1,714]

*sigh* first off i hate articles that refer to 'inflation' in the term. Inflation is not prices going up... Inflation is the devaluation of the currency.

With that being said, prices have been going up steadily for the past several months. Bread is up $0.40 or so, Milk is up almost $1 a gallon (this one makes sense though after the 'milk wars' last year), and various other items have been jumping quite rapidly as well.

While $0.40 here and there may not seem like much to some, it adds up very quickly to those who are on fixed incomes.

[I AM NOT THAT GUY 5,715]

How are the prices in your neighborhood? Are you seeing inflation in your town already?

I already saw wholesale prices take maybe a 20% hike in my business last year. But, with the down market, there has been little pressure to increase wages. On the retail side, I have just been passing those costs to my customers, as have many retailers in the area.

[I AM NOT THAT GUY 5,715]

*sigh* first off i hate articles that refer to 'inflation' in the term. Inflation is not prices going up... Inflation is the devaluation of the currency.

With that being said, prices have been going up steadily for the past several months. Bread is up $0.40 or so, Milk is up almost $1 a gallon (this one makes sense though after the 'milk wars' last year), and various other items have been jumping quite rapidly as well.

While $0.40 here and there may not seem like much to some, it adds up very quickly to those who are on fixed incomes.

But the dollar is being devalued. It buys a smaller and smaller share of the market basket. The value of the dollar is based on the exchange value for goods and services.

Edited April 1, 2011 by Some Old Guy

[Obama 2012 1,714]

But the dollar is being devalued. It buys a smaller and smaller share of the market basket. The value of the dollar is based on the exchange value for goods and services.

not exactly.

The dollar is an item like anything else out in the market. In somewhat of a sense, it is a product in itself. People invest in the US dollar.

When the FED prints more money, it discourages investment in the dollar and/or creates a surplus in dollars therefore weakening the value of the currency.

In turn, when the currency is weakened, then it buys less on the open market.

It's part of the reason why oil prices are where they are. When the dollar starts going down, people invest in something more stable like oil, increasing its value. The same goes in reverse. If the dollar gains strength from investments, people get out of oil, because the economy feels that when people have more buying power, they will be able to get more oil for less $$$, so oil has no more value for them as investors.