Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Jacob Snyder who wrote (11717)	12/8/2001 9:18:56 PM
From: Mark Adams	Read Replies (1) of 74559

Walk down the aisle at Walmart, remembering what prices were last year, and you conclude there is no inflation I've noticed increases- in basic things like Mayo or Butter. I think it's tied to the fact that there are some basic goods the consumer must purchase on a regular basis. These goods still have pricing power- so their prices are increased to offset higher costs to the mfg (employement, insurance, energy and so on). Sectors less fundamental to survival don't share the same level of pricing power, and probably haven't faced the full impact of the deflationary forces brewing yet.

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