Companies Say Higher Prices Loom

[alp227]

Source: The New York Times

A package of Oscar Mayer cold cuts. A pair of Nine West boots. A Whirlpool washing machine.

By the fall, people will most likely be paying more for each of them, as rising prices hit most consumer goods, say retailers, food companies and manufacturers of consumer products.

Cotton prices are near their highest level in more than a decade, after adjusting for inflation, and leather and polyester costs are jumping as well. Copper recently hit its highest level in about 40 years, and iron ore, used for steel, is fetching extremely high prices. Prices for corn, sugar, wheat, beef, pork and coffee are soaring. Labor overseas is becoming more expensive, meanwhile, and so are the utility bills to keep a factory running.

(snip)

People at the bottom of the income scale struggle more as these prices rise, of course, because a larger share of their spending is on such essentials.

Read more: http://www.nytimes.com/2011/02/15/business/15prices.html?partner=rss&emc=rss&pagewanted=all

[Thor_MN]

1. But the food prices don't matter since they are volatile...

That's what they have been saying....

[customerserviceguy]

2. Sounds like the old 'bend over and take it' that corporations used to sell

during the high inflation of the Sixties and Seventies. While they might get away with it here and there, today we have tools that will thwart inflation like they couldn't even imagine in those decades.

Today, you can buy other people's used stuff in ways that will drive the mass marketers crazy. Why buy some new glitzy crap, if I can buy a serviceable item on Craigslist, Half.com or eBay? Even for stuff that needs to be bought new, the Internet can connect many buyers with many sellers.

[alp227]

6. haha i save by buying used stuff if i can find them cheaper online

that's where i've bought textbooks and spare electronic batteries

[customerserviceguy]

7. And we've never really seen the Internet

during a period of relatively high inflation, with one exception. When gasoline prices were headed for the stratosphere in mid-2008, I'm certain that the gasoline apps offered by MSN, etc. were really being heavily consulted. If you sold gas in the Seventies, you only had to worry about what the guy across the corner, or down the street was charging. With "Gas Prices - MSN Auto" you have to be concerned about the stations at any point along your customer's route.

It may be one of the greatest inflation fighting tools we've ever seen. Knowledge has always been power.

[AC_Mem]

3. I think I'm going to invest in a small freezer

I've been watching with growing alarm the cost of food over the past six months.

I'm a BIG coupon shopper; know just about every price in my grocery store and about 5-6 months ago there was a "shift" upward. I don't know that a casual shopper would really notice it but since I'm so anal about it I picked it up immediately. Butter that I could find for $2.29 per pound went to $2.59 - now it is $2.99, and that is in less than 6 months. I could name dozens of other instances.

When I go to the grocery store I think to myself "$100.00 is the new $25.00" and it's the truth.

While there will be a small investment in a little freezer and a bit more in electricity, I think the food savings will offset that nicely. I hate that it is coming to this, but I've been watching it come and I want to be prepared to offset what my coupons won't cover for my family in the days ahead.

I guess now is the time to start looking, before the price of freezers go up too. :/

Annette

[Angry Dragon]

4. Whirlpool moved plants to Mexico or are going to

[SnakeEyes]

5. Let's not get hysterical here

Let's let Glenn Beck remain the crazy one and going on about storing food.