(1) Yesterday, data on the wholesale “Producer Prices” was released showing an 8.6 percent increase in prices for final demand products.
theconservativetreehouse.com/blog/2021/11/0…
theconservativetreehouse.com/blog/2021/11/0…
(2) Today, the “Consumer Price” data was released showing a massive 6.2 percent increase in prices for goods that are currently available for sale.
bls.gov/news.release/c…
bls.gov/news.release/c…
(3) With wholesale price increases (8.7%) running ahead of retail price increases (6.2%) that means more retail price increases are already built into the supply chain.
The 2.4% diff is essentially an inflation lag already in the supply chain (raw material, intermediate, final).
The 2.4% diff is essentially an inflation lag already in the supply chain (raw material, intermediate, final).
(4) The difference between Wholesale and Retail is 28%.
8.7 - 6.2 = 2.4
2.4/8.7 = 28% diff
That's a good back of envelope way to crudely estimate the future price of produced goods.
Current bread at $4.69 + 28% gives you an approx retail price for future bread at $6.00
8.7 - 6.2 = 2.4
2.4/8.7 = 28% diff
That's a good back of envelope way to crudely estimate the future price of produced goods.
Current bread at $4.69 + 28% gives you an approx retail price for future bread at $6.00
• • •
Missing some Tweet in this thread? You can try to
force a refresh
