We covered this in a recent podcast, how we were starting to notice that the prices at Wal-mart were increasing. Now, this is getting mainstream attention as, I think, it’s another indicator that things aren’t going well for the economy. Yes, we keep hearing about how much things are getting better, but as we’ve been pointing out, they are not.
If you’ve been taking our advice and putting together a list of news and informational resources on the Internet and checking them regularly (an RSS reader makes this pretty easy), you should have noticed that nearly everywhere is sounding the alarm on the economy. This is no longer some “fringe” source speculating on some possible potential downturn, this is reality. And it’s time to wake up and smell the coffee, at least while you can afford it.
Yesterday, Tuesday, October 5th, 2010, the DJIA was up 193 points while at the same time the US Dollar Index fell from 78.6 to 77.7 and gold was up $25 an ounce. That should tell you that the markets have nothing to do with the reality of the economy. Do not watch what the markets are doing, watch the other indicators and most importantly, listen to what your gut is telling you.
Wal-Mart Stores Inc.s prices rose in September to the highest level in at least 21 months, according to JPMorgan Chase & Co., as the worlds largest retailer scaled back discounts from earlier this year.
The cost of a 31-item basket of goods at a Wal-Mart in Virginia was $95.75, a 2.7 percent increase from August and a 5 percent gain from the start of 2010, analyst Charles Grom said today in a report. The price is the most since the New York- based analyst began the survey in January 2009.
Prices for produce climbed as Wal-Mart offered almost no discounts on food last month, Grom said. Price cuts on items such as cereal and ketchup failed to attract as many consumers as Wal-Mart anticipated, dragging down sales in the latest quarter, U.S. stores chief William Simon said last month.
Produce accounted for 7 of the 31 items in the basket, with prices 10 percent higher in September than the previous month. Prices for dairy products rose 2 percent, and meat was unchanged.
Wal-Mart rose 17 cents to $53.52 at 4 p.m. in New York Stock Exchange composite trading. The shares are little changed this year.
Wal-Marts prices came in below a similar basket of goods bought at stores operated by Kroger Co. and Safeway Inc. The gap between Wal-Mart and the traditional grocers narrowed in September, the report showed.