The Consumer Price Index, or CPI, says inflation is stagnant, but who watch the markets can see for themselves that commodity prices are rising exponentially. So what gives? Is Inflation flat as they say, or is indeed rising? For now, at least, global inflation seems quite low. That said, there are some price increases, especially sysco foods in commodity markets. Many speculate that the discrepancy sysco foods can not be possible that Bernanke and the Fed, CPI, or both must be lying. And though nothing and nobody is perfect, and both organizations have made mistakes in the past, they do not seem to be correct in this case. The Wall Street Journal had their pages to explain the inconsistencies last week, explaining that many companies, especially Sysco foods have taken over 10% increase in the cost of raw materials (milk, meat, etc.), but chose not raise prices for consumers. Starbucks made similar concessions with coffee: although they have increased sysco foods their prices by a few cents is not enough to maintain the same profit per cup. If you have further questions about the market and your own money management, talk to your financial adviser. If you do not have one, find a certified financial planner in your area is as easy as a Google search. And there you have it. The Consumer Price Index measures sysco foods inflation and stagnant because they measure the prices that consumers pay, which remained unchanged. Inflation in the commodities market is real, but because of the financial crisis, many companies are taking a slight financial hit to keep consumers shopping in their stores. And it's not just Sysco and Starbucks. Procter & Gamble, Whirlpool, Kraft and a variety of other large companies reported gross margin decreases due to increased costs of raw materials. sysco foods Investment advisors can help you understand the commodities market and its trends better.
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