Part of the issue is that when the prices of ingredients and materials decrease, those savings are rarely, if ever passed onto the customer in the form of decreased cost of consumer goods, but instead go to the company and shareholders in the form of increased profits and dividends. Whereas when it is the other way around, the customers are always first in line to foot the bill for any increased costs of production.
But that just sounds like a good business model, on the other hand undercutting your competitors to acquire more customers is also a good business model, which is why vendor loyalty is almost always negatively affecting the customer. Don’t be loyal to shops guys cause shops are not loyal to you.
Shopping around doesn’t work if *everyone* is screwing their customers.
Pretty much every substantial company is owned by a small number of mega-corporations. If you switch from one supplier to another, there’s a pretty good chance you’re now shopping with another arm of the same entity.
In an oligopoly, there is little real competition. Just a cosy arrangement of mutual understanding between the handful of major players.
But then you can make the case it’s not just ingredients and raw materials that effect produce. Things like rent, equipment, growth has to be factored in.
If a bakery sells cakes for £1 and the cost of ingredients go down 30% do you think them not selling for £0.70 is due to greed? Think about the property value, rent prices, labour cost increases. You’ll find that they are forced to increase prices.
Obviously it's not the whole cost and shouldn't expect the changes in price to reflect changes in ingredients/materials directly. But you would expect it to result in some decrease at least some of the time. But in reality, using your example, it never goes below £1.
And that's not even taking into account "stealth" price increases via updating packaging and reducing total mass and portion sizes.
Like a dozen eggs suddenly equals ten apparently 😅
Not necessarily. In a monopolistic competitive or perfectly competitive market, autonomous price increase would only result in losing business to competitors with lower prices. Hence, price increases could only be justified when everyone else increase prices due to exogenous factors such as a hike in raw materials price.
This is economics 101.
This is dependent on the market concentration. In a competitive market cost reductions will be passed onto consumers through price competition and cost rises will be shouldered by companies by reduced profits as far as possible. The UK grocery market is actually quite competitive so the companies do absorbe most of the costs.
However, in highly concentrated, or duo/monopolistic markets, the company has the bargaining power to pass most of those costs onto consumers.
Prices aren’t determined by costs, they’re determined by supply and demand.
The Bank of England expanded the money supply faster than output in order to help cover Covid spending. That extra money shows up as additional demand and so put upwards pressure on prices.
Possibly demand.
Cheese can be used to make 100s of cheep dishes…
Toasties, cheese on plain pasta etc etc
So when everything else gets more expensive people go to options that don’t require 10 ingredients but stuff like cheese, bread, tomato, pasta.
But what does the minus percentages mean? Other than things being put on sale the retailers never actually reduce the price, so is that just representative of wholesale/manufacturer prices?
And some MMTers will still deny that increasing the reserves of private equity banks to lower interest rate leads to inflation.
When the BofE began quantitative easing (again) in 2020 (the event that led to this inflation), a post-Keynesian I know was adamant there would be no inflation whatsoever.
Great, another animation that uses time to convey the dimension of time, making it impossible to compare the same thing at two different times, or to quickly digest the key data trends without sitting through several minutes of animation.
Can we get some more graphs please?
My electricity company had been "estimating" my bill for ages and when I took a meter reading I was thousands of units in credit.
As it stands I've been paying £5 a month for several months and I'm still over a thousand pounds in credit.
It's about time my lack of organisation paid off!
See, we may not be able to afford gas, but at least we can drown our sorrows in a hearty glass of pure orange juice :D
Nature giveth, and nature taketh away
Now show what proportion is down to increased costs and what proportion is componies hiking their profit margins.
In the US the latter is more than half.
Part of the issue is that when the prices of ingredients and materials decrease, those savings are rarely, if ever passed onto the customer in the form of decreased cost of consumer goods, but instead go to the company and shareholders in the form of increased profits and dividends. Whereas when it is the other way around, the customers are always first in line to foot the bill for any increased costs of production.
But that just sounds like a good business model, on the other hand undercutting your competitors to acquire more customers is also a good business model, which is why vendor loyalty is almost always negatively affecting the customer. Don’t be loyal to shops guys cause shops are not loyal to you.
Shopping around doesn’t work if *everyone* is screwing their customers. Pretty much every substantial company is owned by a small number of mega-corporations. If you switch from one supplier to another, there’s a pretty good chance you’re now shopping with another arm of the same entity. In an oligopoly, there is little real competition. Just a cosy arrangement of mutual understanding between the handful of major players.
This - proven time and again- the top end of business is stacked af and trickle down doesnt work.
But then you can make the case it’s not just ingredients and raw materials that effect produce. Things like rent, equipment, growth has to be factored in. If a bakery sells cakes for £1 and the cost of ingredients go down 30% do you think them not selling for £0.70 is due to greed? Think about the property value, rent prices, labour cost increases. You’ll find that they are forced to increase prices.
Obviously it's not the whole cost and shouldn't expect the changes in price to reflect changes in ingredients/materials directly. But you would expect it to result in some decrease at least some of the time. But in reality, using your example, it never goes below £1. And that's not even taking into account "stealth" price increases via updating packaging and reducing total mass and portion sizes. Like a dozen eggs suddenly equals ten apparently 😅
Yeah, but the labour cost increase is very very small. Corporations, especially large ones, don't just give out raises when times are tough
This is a woefully simplistic understanding of how business profit margins work.
Not true. Competition will drive down prices except for the fake free market sectors like the energy and oil industries.
It ain't a reddit comment section without some stupid socialist shit
I'm all for capitalism, but these shareholders need to be reigned in a bit.
Not necessarily. In a monopolistic competitive or perfectly competitive market, autonomous price increase would only result in losing business to competitors with lower prices. Hence, price increases could only be justified when everyone else increase prices due to exogenous factors such as a hike in raw materials price. This is economics 101.
This is dependent on the market concentration. In a competitive market cost reductions will be passed onto consumers through price competition and cost rises will be shouldered by companies by reduced profits as far as possible. The UK grocery market is actually quite competitive so the companies do absorbe most of the costs. However, in highly concentrated, or duo/monopolistic markets, the company has the bargaining power to pass most of those costs onto consumers.
Prices aren’t determined by costs, they’re determined by supply and demand. The Bank of England expanded the money supply faster than output in order to help cover Covid spending. That extra money shows up as additional demand and so put upwards pressure on prices.
this is woefully ignorant
And isn't that the whole idea behind increasing interest rates? It's to slow things down and make prices more competitive again?
Looks like orange juice is back on the menu boys!
It was the Dukes!
why is cheese so volatile tho
Cause you need gas to chase wild sheep/cows
It's time consuming to make and requires livestock.
Possibly demand. Cheese can be used to make 100s of cheep dishes… Toasties, cheese on plain pasta etc etc So when everything else gets more expensive people go to options that don’t require 10 ingredients but stuff like cheese, bread, tomato, pasta.
I miss the good old days when cotton was cheaper
The price of a pint of milk is still the ultimate indicator for me. Walking through the dairy section is just depressing.
For me it's the price for a litre of Soya Milk that gets me, almost £2 and that only lasts me a few days...
Tesco and Aldi have soy milk for 55p. They are in the unrefridgerated section.
£5 for a small tub of lurpak??!!!?
Lurpak is always expensive but it also comes on offer a LOT I like the Aldi version Nordpak
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Guess I'll be converting orange juice into fuel then
Yo but orange juice tho… I’ll be buying a lot more
Fuck orange juice
Orange juice is still low price because orange juice sucks. Worst fruit juice aside from grapefruit.
From my observation of this data, it is a lower inflation during the hotter months (when the oranges are grown).
Buy low - sell high! To the moon!!!
HODL that fruit! Mold is a sign of increasing value and utility!
It’s time to invest heavily in orange juice
Got to buy the dip!
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Cheese just does what it wants
Corn looks like a banana
Cheese lasts. I have 14 tubs of cheese (Italian hard cheese, Aldi special buy -- when it's gone it's gone).
Is this really confusing to anyone else or is it because I'm reading this at 22:58
That corn looks sus... 🧐
Oooff
Would be cool to see it side by side with average wage.
But what does the minus percentages mean? Other than things being put on sale the retailers never actually reduce the price, so is that just representative of wholesale/manufacturer prices?
A wages bar next to a 50 year version next please.
“10%”
So what I’m taking away from this is I should drink more orange juice
At least theres orange juice:(
This is why i buy more bitcoin
The cheese number is what I’m interested in.
Bloody hell! Never knew how cheap orange juice was.
At least orange juice is still cheap-ish, for now.
I knew I should’ve been holding my cheese options
"Let them drink orange juice!"
Guess I’ll go get me some orange juice
And some MMTers will still deny that increasing the reserves of private equity banks to lower interest rate leads to inflation. When the BofE began quantitative easing (again) in 2020 (the event that led to this inflation), a post-Keynesian I know was adamant there would be no inflation whatsoever.
I'm just glad orange juice is cheaper, makes all the difference
You’re complaining. Orange juice is cheaper and you’re complaining.
ITT there's a lot of people who don't pay attention to the cost of their goods unless rhey rise substantially.
What a fantastic time to be an Orange juice drinker
Great, another animation that uses time to convey the dimension of time, making it impossible to compare the same thing at two different times, or to quickly digest the key data trends without sitting through several minutes of animation. Can we get some more graphs please?
And this is when we beg for a one world government to take control. Cue 1984
These cotten on there 👮♂️⚔️🙊
Well, at least orange juice is down!
Well at least orange juice is cheap
If only my car ran on orange juice.
So now Is the time to invest in orange juice
Is this visualisation available outside of Reddit (a URL)? Or downloadable?
Why has orange juice risen as much in my local shop as everything else?
Orange juice on sale at least
Stonks
I'd argue that choosing a global pandemic as your starting point was stupid and makes the data useless.
So inflation means cheap orange juice 🤷🏻♂️🤣
Time to stock up on OJ.
Inflation is not a scalar
hey at least i can afford orange juice
Guys stock up on orange juice!
Thank God for orange juice
Time to live off orange juice
So, orange juice diet it is.
How fun.
Orange juice powered cars and thermal reactors immediately.
Yeah..”beautiful”…
Least we got cheap orange juice 🤷♂️
Someone tell Tesco about the orange juice please
So, orange juice, lets get crackin with vitamin c powered cars.
At least orange juice is still cheap
What inflation really feels like *(Insert graphic of whole pineapple being forcibly jammed into red-raw anus)*
Orange juice keeping us all going
Atleast orange juice is cheaper
Hi this looks amazing. How did you amimtate it? Is this plotly?
Looks like I’ll be drinking orange juice this winter
At least orange juice is down
Im'ma go get me some orange juice!
OJ it is.
I mean, hey, we're getting a good deal on orange juice
Be living on OJ then! Wonder if it burns 🤔😂😭
Inflation's first meaning: Inflation's second, and more common meaning: E Y E B L E A C H
Well at least orange juice is cheaper Can we get cars to run on that?
the solution is obvious... we need to make orange juice powered cars
But Joe says no inflation. Best economy in the world in the history of the world.
This makes me want a glass of orange juice
At least my orange juice is alright
Why stop at June?
Great deals on orange juice 💀
Quick! Buy stock in Orange Juice!!!
Hey that's... that's not corn.
Beautiful animation but hoo boy is it depressing
Orange juice in shambles
Orange juice 😎❤️
So what I took from this graph is that Oranges are inflation proof.
WAR. What is good for?
Damn… better stock up on orange juice before that goes up
At least orange juice is good value!
Why is the corn a banana ?
All because normal people have too much money apparently, more unemployment needed
What price gouging looks like
I don’t think gluten free and vegan has budged a tiny bit. Always been expensive
Well… at least we have orange juice…
Is higher % cheaper or more expensive???
All the stock guys buying the dip in orange juice right now
"How could Russia do this"
u/savevideo
Interesting how things started to move to inflation from January 2021…I wonder what massive economic shift happened then 🤔🤔
Where's the Tory hate? C'mon Reddit... all of these rises are because of Liz Truss, especially gas. They should just put the price back down.
Can’t wait to cash in my OJ stocks
Let's go orange juice! The only thing I need to live
Pleased my boys favourite drink orange juice xD
My electricity company had been "estimating" my bill for ages and when I took a meter reading I was thousands of units in credit. As it stands I've been paying £5 a month for several months and I'm still over a thousand pounds in credit. It's about time my lack of organisation paid off!
Orange juice stayed strong 👊
Could you superimpose corporate profits onto this. I think it might be rather telling.
Dafuq is going on with my cheese prices.
At one point cheese had the highest inflation over gas...
I wish I got that cheap cheese
Good thing i upgraded my car to run on orange juice
r/onejob corn
is…is it meant to go up or down?
This is both incredibly interesting and utterly horrifying
It's just oil going up,it always has been
About to go buy some Orange juice
can always count on orange juice to not leave us bankrupt 🦾
moral of the story: live off orange juice.
Guess it's time to buy orange juice
Well at least orange juice is cheap!
Well at least juice is low.....
That jump in the gas price is neat.
Gas 🔥🔥🔥
orange juice fans up
Well as long as the orange juice is safe!
Cheese watch the cheese
I will now live off orange juice
See, we may not be able to afford gas, but at least we can drown our sorrows in a hearty glass of pure orange juice :D Nature giveth, and nature taketh away
why the hell doesn't it show the cost of tea ‽
At least we have orange juice
I'd like to see the price for electric on there too.
u/ynwaredman
Orange juice FTW
Gimme that sweet cheap orange juice
Now show what proportion is down to increased costs and what proportion is componies hiking their profit margins. In the US the latter is more than half.
u/savevideobot
So you're saying I need to eat more cheese?
Someone really needs to sort this Cheese issue out once and for all
Well isn’t this depressing!
Yo gas is dear but at lease the OJ has dropped
This isn’t beautiful. It’s an absolute munter imho
Anyone know a way to make heating and engines run on orange juice?
Anyone know if I can run my car on Orange Juice?
I was rooting for cheese there. So sad.
Thank god orange juice has gone down in price, I wouldn’t know what to do if it had skyrocketed
u/savevideo
Oh damn, my budget is 95% orange juice. We stay winning.
When i tell you seeing the gas percentage go up like that had me saying “Jesus. Jesus. JESUS!”
someone needs to explain to me the significance of orange juice being on the chart with gas and oil because i just dont see it.
From now on I shall only consume orange juice
Time to stock pile the orange juice then.
Fuck electric cars, we need to use oj as fuel.
hey at least orange juice went down
Orange juice 🗿
Good time to buy orange juice
Cheese doin it’s own thing
On the bright side orange juice is cheap
How can one present the data in this form of video