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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: J-L-S who wrote (22169)6/29/2006 2:01:19 PM
From: Kirk ©  Read Replies (1) of 42834
 
You can make the same argument and substitute "rent" with "energy."

When you do that, the cost of higher rent for the trucker is similar....

Are you and Bob going to argue next that higher rents are not inflationary too?

Inflation is defined is loss of purchasing power. If Bob's listeners have less to spend at Walmart because they spend more on gasoline, then they have lost purchasing power, thus have been impacted by inflation.

BTW, have you noticed how much more Walmart and Coke charge for sugared sodas? Shipping costs, oil for the plastic bottles or to melt the Alum cans and sugar going to make ethanol are all more expensive due to higher energy prices. Walmart raised its prices on its house brand sodas by about 10% recently... I guess they felt they could pass on the higher prices for a product that has a high energy content.
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