Hooray! The Price Of Toilet Paper Is Going Up Again, Are You Cheering Too

www.zerohedge.com

Authored by Mike Shedlock via MishTalk,

The Fed is rooting for more inflation. It's coming and the Fed is cheering.

Huggies maker Kimberly-Clark announced price hikes, joining General Mills, Hormel and others in passing along added costs.

The Fed is undoubtedly pleased that Higher Commodity Costs are Now Passed on to Shoppers. 

Makers of everything from diapers to cereal are starting to feel the strain of higher commodity prices, and some are passing the added cost along to consumers.

Kimberly-Clark Corp. (KMB) said Wednesday it plans to raise selling prices across much of its North America consumer-products business to help counter rising raw-material costs.

Kimberly-Clark said its increases, which will be implemented almost entirely through changes in list prices, are needed to help offset significant commodity cost inflation.

Price Hikes 

• The maker of Huggies diapers and Scott paper products said the percentage increases would be in the mid- to high-single digits and take effect in late June. They will apply to the company’s baby- and child-care, adult-care and Scott bathroom-tissue businesses.

• Cheerios maker General Mills Inc. (GIS) said it will raise prices to partly offset higher freight and manufacturing costs, in addition to rising commodity prices. “Our competitors and retailers are facing the same thing we are,” General Mills Chief Executive Jeff Harmening said.

• Hormel Foods Corp. (HRL)said in February it raised prices of its turkey products, such as Jennie-O ground turkey, to counter sharply higher grain costs. If the rally in the commodity markets were to continue, the company would likely pass along further increases, Chief Executive Jim Snee said. Hormel also raised prices of its Skippy peanut butter.

• J.M. Smucker Co. (SJM)  said it recently raised prices for its Jif peanut butter and that it might do the same with pet snacks because of higher shipping costs and other inflationary pressure. Smucker Chief Executive Mark Smucker said retailers are passing increases along to consumers. “We only raise prices when costs are meaningfully higher, and we partner with the retailers to make sure it’s justified and that we move together,” he said.

Hooray! Hooray! Hooray!

In addition to toilet paper, price hikes are slated for Huggies, Cheerios, peanut butter, and turkey.

No doubt, that's just a start.

The Fed is very pleased that your dollar buys less than a month ago. Are you cheering  too?

Easy Money Quote of the Day: Fed "Won't Take the Punch Bowl Away"

On March 25, I noted the Easy Money Quote of the Day: Fed "Won't Take the Punch Bowl Away"

San Francisco Fed President Mary Daly won the gold medal for easy money statements.  She said the central bank would show at least “a healthy dose” of patience. ”We are not going to take this punch bowl away,” said Daly.

She wants higher inflation as do four other Fed presidents I cited. 

Spotlight on the Fed

Fed Chair Jerome Powell wants to let inflation run hot to make for alleged lack of inflation in the past.  

In short, he is unhappy to have failed at destroying the purchasing power of your dollar fast enough.

He would not recognize inflation if it jumped off the table and spit grapefruit juice in his eyes.

As discussed previously, Inflation is Poised to Soar, 3% by June is "Almost Certain"

Historical Perspective on CPI Deflations

A BIS study of deflations shows the Fed's fear of deflation is foolish.

"Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive," concluded the study.

For discussion, please see Historical Perspective on CPI Deflations: How Damaging are They?

Japan has tried what the Fed is doing now for over a decade, with no results.

Yet, Powell hell bent on producing more than 2% inflation until the strategy "works".

It already has, using the word "works" rather loosely.

Home Prices Rise at Fastest Pace in 15 Years

Inflation is Rampant and Obvious 

Yesterday I commented Hello Fed, Inflation is Rampant and Obvious, Why Can't You See It?

The national level average year-over-year increase in home prices is 11.2%.

Click on the above link for a series of 5 charts that explain what's happening.

What Would I Do?

For the answer, please see Reader Question: What Would I do Differently Than the Fed?

巴士的報

麥當勞宣布，由於食材通脹及貨運成本急升，經審慎考慮後決定，今日凌晨4時起微調部分食品價格，調整幅度介乎5毫至1元，全年平均加幅為1.4%。而較受顧客歡迎的魚柳飽、 豬柳蛋漢堡及六件麥樂雞超值套餐等多款產品，則繼續凍價。

麥當勞表示，疫情下市民減少出外用餐，預期食肆未來的經營環境仍充滿挑戰。同時，外地多個港口關閉，貨船縮減國際航線，令貨運價格於過去一年大幅上升，反映貨物海運價格的全球貨運指數按年上升超過兩倍，對營運成本構成重大影響，預期貨運價格高企仍會持續一段時間。據政府統計資料，去年香港綜合食品消費物價指數中，麥當勞的主要食材如豬肉、牛肉、蔬菜等均錄得顯著按年升幅。為此，麥當勞對個別產品價格作溫和調整，全年平均加幅為1.4%，調整幅度介乎5毫至1元，今日凌晨4時起生效。

部分單點產品，例如巨無霸、芝士安格斯、麥旋風、九件麥樂雞，將會加價5毫。至於「超值早晨套餐」、「超值套餐」例如巨無霸餐、磨菇安格斯餐，就加價1元。

同時，麥當勞維持多款受歡迎食品的價格，以減低對顧客的影響，例如11元的魚柳飽、25元的六件麥樂雞超值套餐，均分別連續第5年及第3年凍價，而12元的豬柳蛋漢堡亦已連續第2年未調價，此外多款產品亦維持凍價多年。

另外，麥當勞透過麥當勞App每星期送出200元美食優惠，復活節期間，由4月5日至11日推出1元港式奶茶、12元煙燻麥炸雞配中汽水、19元雙層洋蔥牛蛋飽配中汽水、及29元雙層魚柳飽餐。