Zero Hedge: Earlier today we noted that the one thing every company was obsessing during their Q1 earnings call: inflation. As BofA equity strategist Savita Subramanian calculated, mentions of “inflation” quadrupled YoY, and after last week, mentions have exploded nearly 800% YoY. More striking was her observation that as “mentions skyrocket to near record highs from 2011” these point to at the very least, “transitory hyper-inflation ahead.” This is an official statement from a Big-4 bank, not some tinfoil conspiracy blog.
“Ye shall do no unrighteousness in judgment, in meteyard, in weight, or in measure.” Leviticus 19:35
What is more concerning is that not only are companies talking about inflation, they are also responding to soaring input costs by hiking prices either in absolute terms or by stealth shrinkflation.
Of course, once companies realize they can get away with such shrinkflation – and they will because as a member of the Red Flag Deals message board pointed out…
I tried telling the clerk at Costco about this, and they said “who cares, it’s just 20 sheets.”
Will be the typical response.