In the wee hours of this morning Zero Hedge posted up the following story:
German Retailers To Increase Food Prices By 20-50% On Monday
Some commentators were skeptical that they could or would go through with price increases that large.
Well, they followed through on the increases and some of them were eye opening. Via Disclose.TV:
Grocery giant #Aldi is raising prices on 400 products by up to 30% starting tomorrow and expects other discounters like Lidl, Edeka, and Rewe to follow suit.
The discounter expects food purchase prices to further rise by 20 to 50 percent over the next few weeks, according to information from the Funke Mediengruppe.
Ouch, as that is a “low cost” grocer so it makes one wonder how much the price increases at their US stores will be in 3 to 4 weeks.
Also from TheLocal.de in Germany:
Supermarket prices go up
It’s the news nobody wants to hear right now: supermarkets are hiking their prices up once more in line with inflation.
Discounter giant Aldi raised the prices for numerous food items on Monday.
Berlin newspaper Tagesspiegel reported that the Milsani own-brand butter at Aldi Nord now costs around €2 instead of €1.65 as an example of the price hikes. The store had already increased the prices of various products twice in the past two weeks. There are also price increases at Edeka and Rewe.
If anyone does not think that is about to happen in the US also, they are smoking crack. The transportation costs alone are killing margins and with shortages on top of the manufacturing and distribution issues, America is about to see 20%+ increases also on staples along with other food taken for granted for so long.
Good thing the BEA and Fed do not qualify it as hyperinflation thanks to the hedonic adjustments keeping things under the magic 20% mark even if in reality it is 30%.
Thanks Senile Joe and insane Jay Powell!