Quote:
Originally Posted by Slava
I think I posted before (maybe not though), that without the rate hikes this year the inflation would be at their target already. I think they've gone too far already, but I suppose time will tell.
The food inflation "story" is almost just politics at this point. Competition is not the issue, as the grocers are not making enormous profits based on this. I've posted the evidence a number of times...they've made money on other items and while the grocery costs have risen, so have the inputs. Profit margins in that subsection have been flat.
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They're pointing to non-grocery items as the cause of higher profits, but I don't believe any if the large grocers report segmented financials do they? Hard to conclusively say that's true without actual numbers, imo.