September 16, 2017

NOTHING COSTS MORE THAN IT USED TO:

Bacon fans take heart as wholesale pork belly prices plummet (Reuters, 9/15/17) 

What goes up must come down, said food and livestock analysts. The retail bacon price spike dampened consumer and food service sales. That, in turn, has sent wholesale pork belly prices falling about 50 percent in the past few weeks, said Steve Meyer, a pork analyst at Indiana-based EMI Analytics.

"That pushback is the primary reason that belly primal prices are now at $104 per cwt," Meyer said. "These low wholesale values will encourage storage and attract end users back when the pricing is eventually passed along."

One of the well-known problems with inflation measures is the failure to account for such substitution.  No one needs bacon.  We just swap in an alternative when its price goes up.

Posted by at September 16, 2017 7:36 AM

  

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