Question for the board econ experts

Whoosh!
Inflation up slightly. Consumer spending down slightly. Pre-tariff inventories shrinking.
Everything's fine.
 
Businesses definitely would never raise prices in anticipation of higher costs. We've never seen that before as risk mitigation. It's always after they've already incurred losses that they raise prices.
~"UW MBA" graduates
lol exactly. If costs actually determined prices then they would price stuff at replacement cost, which is supposedly higher and is known. They wouldn’t wait to move prices until the higher cost stuff was on the front of shelves.
 
Retail sales adjusted for inflation basically haven’t moved in forever.
 
Businesses definitely would never raise prices in anticipation of higher costs. We've never seen that before as risk mitigation. It's always after they've already incurred losses that they raise prices.
~"UW MBA" graduates
lol exactly. If costs actually determined prices then they would price stuff at replacement cost, which is supposedly higher and is known. They wouldn’t wait to move prices until the higher cost stuff was on the front of shelves.
I think it was in 2022 I read an article in the Wall Street Journal that talked about how Coca-Cola had raised its prices well above the actual inflated cost because their studies showed that consumers would pay the higher prices since Covid-era inflation was raising prices of all goods and services across the board. That was an eye-opener for me. Coca-Cola was actually making bigger margins in the face of all that inflation.
 
Based on an elasticity data driven decision. A good example proving the point that companies would not wait for higher COGS to raise prices if they thought they could get away with it.
 
Based on an elasticity data driven decision. A good example proving the point that companies would not wait for higher COGS to raise prices if they thought they could get away with it.
Imagine selling for a higher price if the public will pay it. Sort of a free enterprise Econ 101 lesson. Versus the labor theory of value in which the market doesn't set prices but commie/socialist elite decide what the right price is supposed to be.
 
Jim Rome could have taught economics
Why do teams charge so much for tickets?
Because they can
 
Economists have been baking in tariff inflation into their estimates for two months now. Guess they didn’t get the memo that you are supposed to wait. Retailers like Walmart are threatening them. Do it Walmart, quit talking about it.

With the amount of air cover that companies have from the media and economist expectations, surely they’d have pulled they’d have pulled the trigger by now if they were going to do it right?
 
The only payoff with reading H’s posts comes when he tries to play grown-up and just gets his ass handed to him time and again until he ejects.
Like this thread.
 
PPI showing similar results to CPI. So much for the just wait you’ll see crowd.
 
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