Skip to comments.Food-Spending Drop May Signal Deflation
Posted on 12/31/2009 2:48:44 AM PST by The Magical Mischief Tour
A DECLINE IN FOOD SPENDING confirms a deflationary undercurrent. Consumers are still spending less on food, even while pushing a touch less forcefully on the usual money-saving levers suggesting disinflationary retail prices may have worsened to end 2009. The deflation-induced operating deleverage that plagued food retail over the past three to six months leaves little room for further price declines just as we enter a tough holiday season.
The table is set for a competitive holiday season. Consumers continue their trend of "shopper activism" (coupons, promotions, etc.) and plan to spend less this holiday season. Twenty-four percent of our 105 survey respondents say they will spend less on groceries for the holidays versus a year ago, while only 15% expect to spend more. While deflation is likely a key factor in our respondent's expectations, the persistence of thrifty spending patterns (especially for an essential consumer staple), such as couponing/buying on promotion (41% "more" year-over-year versus 39% average) and choosing lower-priced kinds of food (e.g. "changing their diet;" 92% "more" versus 95% average), indicate the consumer generally is not yet willing or able to shift to spending from saving.
(Excerpt) Read more at online.barrons.com ...
We consumers also don't take kindly to having to SUBSCRIBE to read the rest of an article, even if the first four weeks is for free.
I call bull.
I’ve seen a number of interviews of people (mostly guys) who were wrongfully convicted and spent 10-15-20 years in jail.
They make a point when they come out that one of the things that surprises them the most isn’t the I-pods or the technology or the satellites - it’s the prices!
Google the title..
“Food-Spending Drop May Signal Deflation”
Nah. Just a deflation of expectations under a
psychotic Democrat administration that’s he&&-bent on confiscating wealth and re-distributing it to “worthy” Democrats.
Cutting expenses is just one way of girding for the onslaught of “social justice” and the dictatorship of the proletariat in the form of confiscatory taxes.
So, congratulations to all you psychotic Democrats out there. You’re all in the process of killing the goose.
One can only hope there will be an electoral backlash that will make 1994 seem like a game of tiddly winks; that is, if the electoral process is untainted by Democrat fraud and abuse and intimidation by Democrat operatives with uniforms and clubs.
(Scratch the surface of a liberal Democrat and you’ll find a seething, psychotic, enraged and frustrated totalitarian.)
I call it the chef boyardee index.
Last jan, a tin of ravioli was 50c.
Now its $1.65, AND they are reducing the size of containers
Something is telling me you originally hail from the U.K.
no. I just spent to much time talking to folks in India this past week.
With Safeway club discounts yesterday I picked up OJ, Milk, round roast, and chips and an average of about half price.
my neighbor used to refer to a can of something as a “tin.” I always thought it was cute.
I am glad I am not the only one who has noticed the prices of foods continued to increase dramatically most of last year. Of course, when the price doubles, there is a limit we will pay. I will find a substitute or go without. Especially, when the company thinks I am too stupid to notice the container size decreased as the price increased. For that reason I went off my box per week Honey Bunches habit 2 years ago and switched to oatmeal with maple syrup & pumpkin pie spice.
In Newspeak, when prices go up it is call deflation.