Inflation Update - May 17

Inflation Update - May 17

Postby dan_s » Mon May 17, 2021 5:50 pm

We all know that gasoline and utility bills consumers are going way up this year. Weak U.S. dollar will send all commodity prices higher and food is next.

From Stifel on 5-17-2021

Chicago Food Field Trip Takeaways – The Pricing Window is Open, Jump Through (Now) - Christopher R. Growe - We hosted our annual field trip to Chicago, virtually of course, meeting with 11 food companies over three days. While the takeaways from each company meeting were certainly enlightening, the themes that developed across the meetings were equally important. To that end, we heard a consistent drumbeat of an open pricing window, a desire to move quickly to raise prices, some "bumpiness" in margins in the coming months as pricing catches up to inflation, but a confident full year view nonetheless. At-Home food consumption remains elevated (MSD 2-yr comps) and away-from-home is accelerating — the confluence of these factors suggests stronger near-term growth for the industry. However, we believe much of that will be offset by the fast-rising cost inflation. Balance sheets remain in strong shape and optionality abounds — share repurchases and full acquisition pipelines. Of the companies we met with, we are recommending Conagra and Mondelez — we believe they are each well positioned to outperform. Hershey, Mondelez, Kellogg, Kraft Heinz and General Mills had the most confidence in their growth and pricing endeavors.

Printing $Trillion for bailouts and new infrastructure projects will send the CPI way up and ALL Americans will pay for it. It is a myth that only people making over $400,000 will pay for this madness. "Inflation" is a tax that EVERYONE PAYS.
Dan Steffens
Energy Prospectus Group
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