The “producer price index” is essentially the tracking of wholesale prices at three stages: Origination (commodity), Intermediate and Final. The Bureau of Labor and Statistics (BLS) released stunning price data [Available Here] showing a dramatic 7.8% price increase in Final Demand products at the wholesale level.
When you see the wholesale level of prices almost double the increase in consumer level inflation rate, you can predict that consumer prices will likely go even higher. The future finished goods at a retail level will carry the current wholesale price increase. Stuff costs a lot now… and stuff is about to cost even more pretty soon.
Food products are fast-turn consumable goods, and the inflation in the food sector is jaw-dropping already. However, fresh and processed foods turn at different inventory levels.
Obviously fresh foods spoil fastest (think produce, fish, meats and dairy) so they are replenished more quickly and the thin supply chain (field to fork) passes along increased costs fast. Processed foods have a longer shelf life (boxed, canned, frozen, etc), and as a consequence have a much larger inventory level in manufacturing, warehousing and retail storerooms/shelves. Within processed foods, there is a lag between cost increase at origination and that cost hitting the stores.
The problem identified within the current ‘producer price index’ is that price increases in the raw material and intermediate material are building into the supply chain. Keep in mind the entire supply chain is dependent on energy costs and the fuel prices that impact transportation.
The Moderna and Pfizer vaccine tests were conducted, as customary, with a control group; a group within the trial who were given a placebo and not the test vaccine. However, during the trial -and after the untested vaccines were given emergency use authorization- the vaccine companies conducting the trial decided to break protocol and notify the control group they were not vaccinated. Almost all the control group were then given the vaccine.
