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Soaring Inflation Around The Globe: Cartier Hikes Russian Prices By 50%, Suntory Whiskey Prices Surge 25% In Japan
As the Fed continues to rely on seasonally-adjusted survey data to validate its belief that the time to hike rates is coming, even as market-implied inflation swap rates are back to 2008 levels, the one thing that continues to happen everywhere but in the US is precisely what the Fed wishes for the US (as we reported yesterday): devaluaing currencies and spiking inflation (and expectations), without any accompanying rise in wages, have lead consumers to a buying frenzy in Russia, and to a far lesser extent Japan. As a result, providers of products and services in these countries have been scrambling to match prices to demand, especially since the demand is purely the result demand brought forward due to plunging currencies, not the result of some magical source of widespread wealth. Case in point, Cartier, the luxury jewelery maker, raised its Russian prices by as much as 50 percent after the ruble plunged to a record low.
According to Bloomberg, the price increases reflects the current ruble rate, according to an employee at Cartier’s store on Moscow’s Petrovka Street. The jeweler closed its outlets in the Russian capital for the first half of today in preparation for price revisions. Cartier’s Trinity ring now sells for 125,000 rubles ($2,040), compared with 78,000 rubles, previously.
And surely once the USDRUB tumbles, Cartier will revert right back to the old prices...
Elsewhere, retailers including Apple Inc., Renault SA and McDonald’s Corp. have been raising prices to offset the drop in the value of their sales in rubles. The ruble sank beyond 80 per dollar yesterday as panic swept across Moscow’s financial markets after a surprise 650 basis-point interest rate increase failed to stem the world’s worst currency rout this year.
It's not just Russia: Suntory Liquors said Monday it will raise prices beginning in April for three of its high-quality whiskeys - Yamazaki, Hakushu and Hibiki - as well as some imported brands.
The price hikes, ranging from 16.7 percent to 25 percent, will affect 39 products in six brands and reflect surges in costs for raw materials such as malt and corn, the Suntory Holdings Ltd. unit said.
This is the first price hike for Suntory whiskey in about seven years.
Now if only consumers had any savings to permit this one-time surge in spending to continue for a little bit longer. As for the other unthinkable alternative, where corporations actually raise employee wages, it is so ludicrous in this day and age, we won't even mention it.
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If you're gonna die from radiation sickness, might as well be shitfaced...
Is this a sighn of escape velocity
CB's will be pleased.............GDP to the moon Allice
yeah but in testimony, Yellen is going to say Inflation is well contained within their targeted range, much like Bernanke did the whole time that mofo was Fed Chair.
I guess inflation is well contained for the 1% Jews who are making a killing via insider information in this rigged stock market.
US Federal Reserve does not measure inflation in ruble prices.
Grain prices collapse.
Energy prices collapse.
What do you want. a free cell phone?
My personal litmus test when inflation really starts to take off is when a Costco Food Court hot dog goes up from $1.50.
It will accurately out-forecast any alternate news source, economic commentary, or financial punditry out there.
So eat more weenies and be ahead of the game, man.
This is #deglobalization at its best.
Only one thing happens, when prices rise of a specific consumer item, i.e. demand goes down.
Expect lower sales of foreign items and higher demand of Russian produced items which will further insulate Russia from rest of the world which is the way the entire world is moving. All countries are moving towards self survival in their own ways and reducing dependence on foreign owned companies by throwing foreign banks out, throwing foreign companies like hotels, McDonalds, IBM etc....(Some thanks to Snowden, but whatever the reason, all countries are reducing their business dealings with other nations, except with the Chinese, because as the old adage goes, almost everyone obeys the master who has the $$$).
Still don't get it, why America is doing this to itself when it hurts so much and global expansion of US corporations is in a rapid reversal mode?
Providing products at lower prices is damaging to American people?
Good luck selling that idea Willis.
You did not read the second para carefully.
It is not about less product selling or less prices.
It is about being thrown out of China if you are American selling IT hardware or software. It is about being thrown out of Russia if you are Mastercard or Visa or Mcdonalds or Coke. It is about Clorox being thrown out of Venezuela or KFC burning in Pakistan or American beheadings in Syria. It is about Citibank being thrown out of Japan and Spain. It is about losing oil contracts in Afghanistan to China.....etc.
Hope you are getting the drift...? Americans are not wanted anywhere. Their products are not able to be sold while at the same time sales in US itself are hitting lows. Hope you see Fedex results which are declining not as sales growth? American economic hegemony is declining if you can see it.
Thanks Willis.
The sheep in those countries should have bought gold instead of holding fiat thinking the dollar will collapse first. There's no inflation in PM's, not in the US. Stack hard and bury deep while you still can.
This means war!... When you jack with people's booze
if you've never had (suntory) Yamazaki 18, treat yourself. The finest 18 yr old whisky in existence imo.
"As for the other unthinkable alternative, where corporations actually raise employee wages, it is so ludicrous in this day and age, we won't even mention it." no further words necessary
The proles must know their place....
I am so tired to read or hear that there is no inflation... it is so blatantly false.
Even some ZH readers fall for the propaganda sometimes.
Some were even pointing out at falling oil prices this morning.
To me this is BS, oil is clearly manipulated down. Why did the Saudis boost production the way they did, when they did it?
ZIRP/QE is disinflationary ... deflationary when asset bubbles burst
not saying no inflation, however ... but source of inflation not from central banksters ... crony capitalism root cause (ex: drug another country $100 ... US $10,000)
Well if you're planning to get married here soon now's the time to plunk down the deflationary bucks and buy the biggest zirconia your EBT Card can afford.
This will be a big telltale sign that the consumer has returned.
Suntory time. . .
https://www.youtube.com/watch?v=_saLrADKqNM
+1000 for Bill Murray and one of my favorite movies
Titus, any movie that starts with a fullscreen shot of S.J's ass in pink panties, has got to be good...
But oil is down 40%!
But Stan you promised their would be more purchasing power!
Biflation! Enjoy your high priced Suntory thanks to the greed of Bill Murray! /s/ and not idiocy of Central Banker Puppet Wankers
https://www.youtube.com/watch?v=FiQnH450hPM
Although - Japanese whisky, which is produced akin to Scotch, is becoming incredibly popular (or obtaining more widespread popularity, if you will) and the Yamakazi 2013 Sherry Cask (a Suntory product) won best whisky this year. So this might be just supply and demand at work.
I don't think they add in Cartier prices to the CPI... So it's OK...
One nice thing about Japanese scotch is that you can find it in the dark. The other is that it ages via half life.
US is exporting its inflation via USD hegemony. When will the chicken come home to roost?
yep ... and importing deflation (at other countries expense)
https://www.youtube.com/watch?v=qw03mtr6uOg
If the Fed admits there is inflation - then they have to raise rates -
What happens when rates rise? Doesn't that negatively impact goernment borrowing and current debt financing?
Doesn't that imply big trouble?
So the FED can never admit there is inflation any more, right?
Actual question - I'm still trying to understand this stuff.
Thanks
emperor has no clothes moment
i would bet my last nickel that the long end of yield curve would NOT budge (likely go down as raising rate on front not good for economy)
Federal Reserve doesn't want to be "outed"
they started putting jack daniels in plastic bottles, bastards. of all the lousy ways to save a buck. [griswold's boss' wife] the horror, the horror. [/apocalypse now] what we've got here is failure to communicate... [/cool hand luke's boss man]
This could really start unraveling!
I may not be from Missouri, but my mindset is: Just freaking SHOW ME.
Until then I'm out of libertarian Hopium. It's on backorder. And its price just doubled.
RAISE WAGES?
Why? In a time of massive overcapacity, Fed-subsidized free money for buybacks & dividends, a terrible investment climate, labor arbitrage opportunities and a VAST oversupply of labourers, why pay more?
I wouldn't. Who would?
Everything went up except our peasant salaries
it's a big club and you ain't in it
Actually... George Carlin simply misspoke. "It's a SMALL club, and you ain't in it".
But I appreciate and agree with the Sentiment, FWIW.
And speaking of that small club that gets to "skinny dip (using naked shorts) in the Olympic sized QE pool of liquidity"... I sure wish I could, and thus make 'money' hand over fist, and not worry about peasant wages and price inflation.
Actually I think George was right saying "big club" as these fucks are world wide saturated into every damn aspect of our measely lives espec if ya count in their minions the fucking club grows exponentially
That whiskey is a status symbol for the corporate and political class and for the Europeans and Americans overrunning Roppongi hostess clubs. Good move by Suntory.
Tyler, just one dang minute there, Bucko!
How can you have Inflation, if we actually have Deflation of the Inputs:
a. Commodities and Energy (Input variables) are dropping like rocks,
b. Labor is constant or falling (more Inputs), and
c. Gov Regulations (hidden COGS) are irrelevant, since Blue Chips execs can flout the Law and merely pay a 'fine' that's passed on
So where does the COGS go UP in that little Black Box, which causes the OUTPUT to go up also? Is it all those legal bills that they're passing on to us?
http://www.dailymail.co.uk/wires/ap/article-2877124/Russian-ruble-way-do...
High-end whiskey and Cartier? Who collects this data?
If I wanted to get a handle on inflation in the economy, I'd look at the prices of basic groceries and 12 packs of Pabst Blue Ribbon. And gas at the pump, stuff like that.
Since all the wealth has been going to the wealthy, it shouldn't surprise anyone that this group would see some serious inflation in what they are buying.
What this article calls 'soaring inflation' I see as a realization by sellers of luxury goods that they have some real pricing power with their customers. I wouldn't hold my breath waiting for that to leach into the general economy.