Noticed the rapid increase in prices lately?

Discussion in 'Politics, Religion, Social Issues' started by PracticalMac, Aug 12, 2019.

  1. PracticalMac macrumors 68030

    PracticalMac

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    #1
    A month ago I went to Taco Bell and noticed a taco costs 20 cents more
    2 week ago I went to Starbucks and the price of "tall" (12oz) coffee is now $2.59, up from $1.99 in December of 2018.
    Yesterday I noticed Wendy's value menu is also up by 20~30 cents.
    Anyone else see this?

    Fast food joints are easiest to see price increases over time.

    Come to think of it, the last round of iPhone's came out with the China tariffs. Granted the iPhone was exempt but I wonder if Apple was already considering this may happen?
     
  2. Vanilla Ice macrumors 6502

    Vanilla Ice

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    #2
    Living in California, you won’t notice any price increases. So my answer to your question is no.
     
  3. mikef07 macrumors 6502

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    #3
    No as I haven't worried about the price of food for 15 years. I order what I want when I want. I couldn't tell you what any of those things cost at all other than a guess.
     
  4. theapplehead, Aug 12, 2019
    Last edited: Aug 13, 2019

    theapplehead macrumors 6502

    theapplehead

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    #4
    When minimum wage is raised, business owners must raise their prices to counteract the money they lose from a higher minimum wage. In short, everyone suffers-some worse than others.
     
  5. Eraserhead macrumors G4

    Eraserhead

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  6. JayMysterio macrumors 6502a

    JayMysterio

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    #6
    What does that have to do with @PracticalMac if he is in actually in Houston Texas? Or with North Carolina for that matter, neither place has experienced a raised minimum wage. o_O
     
  7. stylinexpat macrumors 65816

    stylinexpat

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    #7
    You are right I have seen prices rise quite a bit. Cost of oil this year dropped by about 20% at least but gas prices are up at least 10% in California. Actually a lot of manufacturers and suppliers have been increasing prices recently. Too many to list. My cousin owns a couple of markets and almost all suppliers have raised their prices so in return he raises his prices too. Then you had an increase of minimum wage this year too so that price gets passed on to the customers too. When minimum wage prices increase by say 10% retail prices rises by 10%. What ever extra costs a business receives often gets passed on to the customer. The Japanese sushi place I go to used to sell the Wagyu beef fried rice under $30 now it is like $42.95 or $44.95. If I am not mistaken this year alone there were like 2 price increases at that restaurant :eek:

    68F72A0D-C066-4672-A4DE-30A36A9B7FCD.jpeg 448EDBAE-F117-4890-9B4C-393A45292F86.jpeg
    --- Post Merged, Aug 13, 2019 ---
    Not always. Some cities have been raising prices on local businesses. For example in Santa Barbara the city wants some restaurant owners to foot the bill for those that park their cars on the street and they raised trash along with other services by quite a bit so the restaurant owners just pass on the costs to customers. When the suppliers that deliver food to restaurants have to pay more money for fuel and salaries they raise the wholesale cost to their customers and when the restaurants wholesale price rises they then raise the retail price to their customers ;)
     
  8. pshufd macrumors 65816

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    #8
    I've noticed prices rising for some services. I've seen attempted price increases for various things like computer hardware with resulting price cuts afterwards. I've seen some tax increases. Gasoline prices are stable. I paid $2.51 for a fillup on Sunday. The price range in the past year has been $2.29 to $2.69. The price of oil has cratered and the price of oil stocks has been crushed so it doesn't appear that much higher gasoline prices, on the spot market, are coming.

    I think that you can look at CPI numbers to get a feel for where prices are going. I see price hikes attempted in the grocery store but little success.

    On the other hand, the ten-year Treasury yield has collapsed and that's forecasting deflation. One-third of sovereign bonds around the world, or $15 trillion, is yielding negative rates. That is you have to pay interest to loan your money. Mortgage bonds in Denmark are now yielding negative rates. My question: if you get a mortgage, do they pay you for borrowing the money?
     
  9. Rhonindk macrumors 68040

    Rhonindk

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    #10
    Not in most cases.
    My other half though works major retail and she mentioned they were changing prices because tariff’s might raise costs. The current supply chain prices do not support this change. Greed however ... ;)
     
  10. Tomorrow macrumors 604

    Tomorrow

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    #11
    You have to consider the entire supply chain. Minimum wage goes up somewhere, then goods and materials produced, packaged, or processed in that area become more expensive. When fuel prices go up, the cost to transport those supplies goes up.
     
  11. yaxomoxay macrumors 68040

    yaxomoxay

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    #12
    Not really, and I am somewhat price conscious even with groceries. However, I don't really go to fast food joints so it is possible that something caused a cost and price increase in that sector.
     
  12. theapplehead macrumors 6502

    theapplehead

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    #13
    I never said that there was a state enforced raised minimum wage. You only inferred that. Employers and companies have been pressured by other companies to raise their minimum wage. However, the workers don’t realize that this doesn’t actually help them. In fact, the companies that have raised their minimum wage have no problems doing so since they can simply raise their prices to compensate for any money they may lose. So as you can see, we’re right back where we started.
     
  13. rdrr macrumors 6502a

    rdrr

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    #14
    I don't know about fast food prices, I have been asked by my doctor to cut that stuff out so I wouldn't notice those price increases. However, I can tell you that my tech vendors at work have informed us of price increases, and specifically named the tariffs as the reason for the price increase. We did hit them back with, "well the corporate tax break you got should more than cover the tariffs." Of course that didn't work as a strategy, but passing the cost on to consumers is how tariffs really work. Not the fantasy that Trump is trying to tell his base.
     
  14. trillionaire macrumors regular

    trillionaire

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    #15
    My wife and I have noticed major increases in prices for groceries. I recently saw a news report that produce prices have risen by 17% in the last year alone. Granted this is for Canada, where I live, but it seems to be a prevalent issue.

    I also remember hearing that global warming is causing food to be more expensive to produce and less obtainable. Probably another factor to take into account.
     
  15. PracticalMac thread starter macrumors 68030

    PracticalMac

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    #16
    I do live in Houston, TX (to confirm @JayMysterio), and there have been no local increases in minimum wage or other government changes to cause shops to increase price.
    True the store may increase its wage nation wide, but have not heard of Wendy's and TB do same.

    I have not heard or seen anything in this area to cause such a rapid increase in prices.

    Perhaps it is just the fast food restaurant sector that is experiences this price increase.

    I am not a major FF frequenter, but T-Mobile is having a regular free-Taco promotion every week. The taco is free, but I do see what the price is before discount (free!).
    It has been months since I went to Wendy's, but I do remember the value menu prices.
    Starbuck's is my vice (hey, I love their brews!) and I take maximum advantage of their promotions (have to, really), but I did see the price increase.

    I have most familiarization on the price of these goods so it is most noticeable for me.
    You are more familiar in other areas, which apparently have not changed enough to take notice.

    Of course my mom is up in arms about drug prices going up (and that is well known issue)
     
  16. pshufd macrumors 65816

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    #17
    Chinese
    I haven't noticed higher food prices but our main chain here is low margin, customer and employee friendly. WalMart, Aldo, Costco have trouble competing with them.
     
  17. webbuzz, Aug 13, 2019
    Last edited: Aug 13, 2019

    webbuzz macrumors 68000

    webbuzz

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    #18
    Starbucks recently raised prices by 10-20 cents for brewed coffee and up to 30 cents for espresso. They have raised prices every year for the last few years citing increased demand for beans. My tall is $2.31 with tax, up from $1.95 in 2018.

    I just checked a store on University in Houston and it was $2.33 for a tall blonde roast. Are you sure they didn't charge you for a Grande?
     
  18. Huntn macrumors demi-god

    Huntn

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    #19
    No necessarily true at all. They don’t must, they choose. And often they complain in a hyperbolic, inflated manner. I reminder the Papoa John’s guy whining that a raise in minimum wage would cost an extra $.25 per pizza. He could eat it, or I as a customer would apply pay the extra quarter for my $6 pizza to see people working at better than slave wages.
     
  19. theapplehead macrumors 6502

    theapplehead

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    #20
    I agree. I phrased what I was saying poorly. Just like in Houston, there have been no local/state minimum wage increases in North Carolina. However, corporations have chosen to raise their minimum wage across all their stores-whether it be Starbucks, Target, or McDonald’s or any other company. This in turn results in the price hikes everyone is seeing across these stores.
     
  20. pshufd macrumors 65816

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    #21
    I get coffee at my supermarket and my credit union. The price hasn't changed for the past two decades: $0.00.

    You can check at https://quotes.ino.com/charting/?s=ICE_@KC.U19

    Coffee Beans were $160 two years ago and they are $95 today. So coffee beans are down 50% over the past two years. You can pull up a chart of Starbux (ticker: SBUX) and you'll see that their stock price has doubled in the past year. That makes clear sense - your main ingredient plunges in price and you charge the same or more so your profits go up nicely.
     
  21. theapplehead macrumors 6502

    theapplehead

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    #22
    True. They can choose to raise prices or to eat it. From what I’ve seen, it appears that they choose the former. I will give it to you that some companies do choose to eat it-which is good to see since I don’t think it will hurt them at all-but most companies seem to want to stick it to the customer and raise their prices. This hurts those Papa Johns employees when they go to buy a coffee after work from Starbucks who also had to raise their prices because of their choice to raise their minimum wage storewide. Ah the beautiful cycle of economics. ;)
     
  22. pshufd macrumors 65816

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    #23
    Dominoes has outperformed Google for two decades.

    Dominoes did it and way outperformed the other pizza companies with technology. Papa Johns is finally implemented technology into their business and should be able to match Dominoes there. But they will have to spend for that technology. I also think that Papa Johns pizza is awful. Shaq could help their corporate image though.
     
  23. Huntn macrumors demi-god

    Huntn

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    #24
    You are making a status quo argument. Are PJ employees better off at current wages, or better off with a $1 raise, but then their coffee costs $.50 more. By that formula, they would be. :) The bottom line is that business plans should ethically be built on livable wages or they are bad for society as a whole.
     
  24. stylinexpat macrumors 65816

    stylinexpat

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    #25
    This is like what some jewelry suppliers do for Gold and Silver When prices rise. They raise the price of Gold and Silver for Jewelry citing increase of price but when Gold or Silver drops the prices don’t drop and stay at the same price. A year or two down the road when prices start to rise again after dropping they raise prices on you. The manufacturers that sell metal jewelry do the same.

    A while back ago airlines in Asia added a fuel surcharge when oil prices went up but when oil prices dropped they did not remove the surcharge until the government got involved and forced them to remove them. If I remember correctly they were also fined in a Taiwan for doing this.
    --- Post Merged, Aug 13, 2019 ---
    That formula does not work out so well when other items that people buy rise too. I think Trump noticed this today and decided to extend the deadline until December 15 for China tariffs. China obviously had the upper hand in this play. An extension until December 15 will allow Christmas goods to arrive without new additional tariffs which would hurt the already hurting retail section in the US. That would affect the upcoming 2020 election votes for Trump
     

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