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Food Prices Are Soaring Faster Than Inflation and Incomes

bloomberg.com

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Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#141

Post by propertymagnate »

H8crilA wrote: post #121
xbmcuser wrote: post #33

As someone that is the food mostly spice trade prices have started going up in the last 2-3 weeks though prices have not even reached pre pandemic levels. Black Pepper prices have jumped 20+% in the last 20day that price is still 50% cheaper than what it was 4-5 years ago. The largest problem is not availablity of goods rather shipping. I would advise investing in shipping companies if you are active in the stock mar…

Surely you're familiar with the Baltic Dry Index, an index of shipping costs: https://tradingeconomics.com/commodity/baltic Also, in case anyone thinks the current environment is crazy then check out the commodities bubble period of 2008 for that index.

Woah. For anyone interested, go to stats and click 25yrs - it's pretty clear what the above comment is referring to.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#142

Post by adventured »

H8crilA wrote: post #121
xbmcuser wrote: post #33

As someone that is the food mostly spice trade prices have started going up in the last 2-3 weeks though prices have not even reached pre pandemic levels. Black Pepper prices have jumped 20+% in the last 20day that price is still 50% cheaper than what it was 4-5 years ago. The largest problem is not availablity of goods rather shipping. I would advise investing in shipping companies if you are active in the stock mar…

Surely you're familiar with the Baltic Dry Index, an index of shipping costs: https://tradingeconomics.com/commodity/baltic Also, in case anyone thinks the current environment is crazy then check out the commodities bubble period of 2008 for that index.

Which was all caused by an extremely large drop in the dollar. Anytime there is such a drop, you get global food chaos from a big spike in the price of commodities that destabilizes markets until they're able to adjust. And then you get civil wars out of that inevitably, it helped to cause the Arab Spring as one example.

The US Dollar Index was at 120 in early 2002, and then proceeded to fall persistently until the middle of 2008 when it rested at around 71. An epic collapse by the dollar that triggered all sorts of nasty global effects. Fortunately this time around the dollar drop hasn't been so bad, most major currencies are debasing at the same time. The dollar is merely back to where it was in 2015 and 2018, so far.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#143

Post by luxuryballs »

hellbannedguy wrote: post #46

The article blames transportation cost due to Covid, and an increase in raw food prices for the rise in food cost. In my little bubble, in the Bay Area, it feels like plain old greed, and opportunity, but not price gouging. When the government tells me where I can shop, along with my fear of how certain stores have dealt with Covid precautions, my buying habits don’t take price into account like before. The first few…

Geico refunded customers on account of all the less driving during lockdowns.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#144

Post by propertymagnate »

TeMPOraL wrote: post #123
raul-pilla wrote: post #76

Earlier quoted context omitted.

So you're a proponent of the "give the fish" and not "teach to fish"? If the supplies flowing to them stop they starve again, so I am not sure you're right.

I think the biggest risk here - and the reason why talking about "bringing civilization" anywhere attracts strong pushback - is that historically, what happened was people ending up held hostage over supply of fishing equipment. Giving hungry people fish obviously isn't a good solution, because then the fish giver becomes a SPOF. But also because the fish giver now has power over the hungry, and some givers will abus…

I read SPOF as Single Point Of Fish at first.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#145

Post by dmingod666 »

grumple wrote: post #103
DecoPerson wrote: post #4

After reading this article, I want to stock up on more food for myself and my five dependents. Double our reserves of biscuits, cereals, frozen meat, frozen bread, canned food, preserves, long-life milk, honey, multivitamins, MREs, etc etc. Is this panic buying? Is it OK? Does it hurt other people? I’d be interested to hear some different points of view.

> After reading this article, I want to stock up on more food for myself and my five dependents. You should always have some amount of food reserves. Space allowing, at least a few days of food. Canned and dry goods with long shelf lives - eat the oldest of this first during regular usage and refresh the stock so you don't end up with 5 year old canned goods. > Is this panic buying? A little, yes. There's not much ri…

Not that I suggest but I heard a nice quote a while back "If you must really panic, panic early"

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#146

Post by mnw21cam »

azalemeth wrote: post #101
swarnie_ wrote: post #68

Earlier quoted context omitted.

> the number of varieties of vegetables stocked by my local Tesco, for example, has plummeted, and the stock sells out almost immediately after delivery. Are you in a really shitty area or something? I only saw what you described in the first week of lockdown one. Nothing has noticeably changed in my local Morrisons for the last few months.

I'm in an urban area that perhaps is a bit poorer than some others nearby, yes. The bigger out-of-town supermarkets have better stock but my usual urban Tesco (and to a lesser extent the two Sainsbury's Locals nearby) just don't have that much stock. It changed a lot in Lockdown 1 and hasn't really recovered.

I certainly noticed a few months ago that the supermarket in my local small town seemed to be better stocked than the larger supermarket in the nearby medium sized city.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#147

Post by tony0x02 »

gambiting wrote: post #134
dijit wrote: post #131

Earlier quoted context omitted.

Are you kidding. There will be an insane recession, if not a depression. Capitalist economies have a short boom bust cycle and a long one. Short ones cause recessions every 10-20 years. Long ones cause depressions every 100~ years. It was clearly stated that Covid (if nothing else) could easily cause a recession, with other factors played in as well then it could easily trigger a depression.

Can you explain the difference between those, for those of us who are not well versed in economics terms?

Not OP, but I recommend watching the "Economic machine" by Dalio.

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#148

Post by UncleMeat »

raul-pilla wrote: post #76
kingkawn wrote: post #63

Earlier quoted context omitted.

You gotta feed people to be able to do the restructuring. Your logic is hollow to someone starving. Also impressive you’ve attempted to resurrect the idea of “civilizing” people.

So you're a proponent of the "give the fish" and not "teach to fish"? If the supplies flowing to them stop they starve again, so I am not sure you're right.

How many farms have you seen in big cities?

Re: Food Prices Are Soaring Faster Than Inflation and Incomes

#150

Post by european321 »

xbmcuser wrote: post #33

As someone that is the food mostly spice trade prices have started going up in the last 2-3 weeks though prices have not even reached pre pandemic levels. Black Pepper prices have jumped 20+% in the last 20day that price is still 50% cheaper than what it was 4-5 years ago. The largest problem is not availablity of goods rather shipping. I would advise investing in shipping companies if you are active in the stock mar…

Most shipping companies in the stock market have rocketed in the past 2-3 months, so that opportunity has passed I think.
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