Bloomberg is either so biased against Trump or so naive of economics, that they are inventing an inflation problem when none exists.
In an earnings conference call last week, a little-known private label food company told investors and analysts that it had little choice other than to pass on its rising freight and commodity costs in the form of higher prices. It’s a warning that the relatively obscure hints of inflation are about to become obvious — at the grocery store.
Yeah, like a single data point is representative of the entire economy and all of the companies that compose it.
The U.S. economy just received the strongest sign yet that cost pressures facing companies are about to be passed on to consumers, and at a rate that the economy hasn’t seen in years.
Makers of consumer packaged goods have been dogged by concerns that they’re unable to raise prices, and because their input costs have been rising, their profits and stock prices have suffered as a result.
The article makes it seem like rising prices are something anomalous, when in fact it’s part of the normal economic process and unavoidable. It’s as if the author has never heard of the CPI. With the exception of severe recessions, prices are always rising. If prices were falling, that would be a cause for concern, because it would indicate a possible recession.
The author also ignores how food price inflation is actually at multi-year low, which pretty much destroys his entire thesis:
If one zooms out over many decades, it becomes even more apparent how low food inflation is, relatively speaking.
It’s pretty apparent food inflation is the least of concerns, yet the author couldn’t be bothered to do the most basic of research.
If I were the editor of Bloomberg, this is what I would say to the author.