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Italy Braces for Pasta Inflation Amid Soaring Durum Wheat Prices

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Re: Italy Braces for Pasta Inflation Amid Soaring Durum Wheat Prices

#71
post #34

Earlier quoted context omitted.

>I don’t understand what is your “surprise” As I said, pasta ranges in price very widely here. So do coffee and wine. So I do not know what it means when somebody says coffee costs and wine costs . How can it be so standardized?

You can calculate a weighted average of some sort. Or you may sort them in categories and compute the average for each category. For instance you can say that wine in the UK costs on average 9£ per litre and that cheap wine cost 5-7£ per litre (I’m making up numbers).

Of course you can. That is what government statistics and academic studies are for.

But the source here, I believe was from an executive of a pasta factory.

It would be surprising to me if essentially all the pasta in Italy was made by one producer and sold at one price, such that you could talk about trends in fractions of a Euro based on one interview like this.

I'm used to staples being sold at different price points within a grocery store and across different stores or different communities.

Not a range of 40-80% like your sample numbers, but 300% or more.

Re: Italy Braces for Pasta Inflation Amid Soaring Durum Wheat Prices

#72
post #61
post #55

Sort of misleading to use the word “inflation” when this seems to be primarily driven by climate related factors: https://www.bakeryandsnacks.com/Article/2021/09/10/Out-of-co...

According to you, what kind of factors leading to an increase in wheat prices, would make it inflation? In our modern economy, prices are often determined by supply, which can be influenced by factors like climate. Absolutely expected that it would cause inflation.

Technically true. But inflation as a function of monetary / fiscal policy is top of mind for many right now — and what most people picture when they hear the word — and so it’s helpful to draw a distinction.
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