Wednesday, May 4, 2011

This is new

I've ranted here plenty about inflation, and by now I'm pretty much numb to the concept of the ever-depreciating dollar. But I've never seen this before (menu insert courtesy of Farmington Country Club):


Those are some pretty scary increases over a 90-day period, and they can't be explained away simply by referring to "unrest in the Middle East".

Yes, bad weather has played a role, as the insert makes clear, and the "manmade disasters" they refer to are I assume the continued after-effects of the Gulf oil spill, which has particularly impacted seafood prices. But a doubling in the price of iceberg lettuce? WTF? Yeah, I'm gonna throw that one in the "unstable politics" category of explanation.

I'm no math major, but an increase from $8 to $9.25 is 16%, in 3 months. Using compounding, that's an annual inflation rate of over 80%. Um... transitory?

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