Inflation according to .. Campbell’s Soup
One of the best known products of the tradition (if we can say so) of the USA is Campbell's concentrated tomato soup. So well known in the USA that it has been the subject of Andy Warhol's works. A product with a tradition of over a hundred years whose distribution has a particular characteristic: being so famous and in demand, it is a product for which the distribution applies a low and fixed margin, because it contributes over time to create the price image of a chain. It is one of those few iconic products that people remember the price of, perhaps after a generation, and for which grandparents say “In my day I used to buy soup for a week with this money”.
Precisely because of this quality of being a stable and low margin retail and wholesale product, Campbell soup lends itself, in US history, to show the trend of inflation or deflation. Also, in today's modern times, quite confused about the course of true inflation, Campbell's soup can be a good indicator.
Here is the trend in the price of the Soup over the last 125 years. We note the crisis of the 1930s, the price rise from 1940, the inflation of the 1970s, the deflation of the 1980s, and therefore the price rebound. Let's see the .com crisis, then the anticipation of the real estate one.
And now? We can see a flare-up of inflation which, however, seems to run out in a very short time. Whoever sees a "Mini economic cycle" in this phase is right; very fast, which is already moving towards its exhaustion?
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The article Inflation according to .. Campbell's Soup comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/linflazione-secondo-la-zuppa-campbell/ on Tue, 20 Jul 2021 17:10:21 +0000.