Inflation and the "FREE" money that the government is giving out is creating or has created the perfect storm.
-Companies can't find workers, because of the "FREE" money they make more sitting at home. Hopefully this is all about to come to a screeching halt. Anyway, companies that are able to hire are having to pay a lot more in wages which affects their bottom line. They can't absorb those costs so they get passed on to the consumer. I feel sure that companies also add in a little extra to the cost for additional profit, got to make hay while the sun shines
, but that's just my opinion.
-Those unwilling to work now find themselves flush with extra money(money that they didn't earn) and time. So they're cooking/cooking out more, eating out more which increases demand on the food and cooking items we use. That increases the supply demand from the companies producing our cooking products. The same companies that can't find willing workers to meet those demands because of the "FREE" money.
-As for lumber, I think the increase in prices is a result of lumber mills shutting down last year for pandemic and production supposedly hasn't ramped back up enough to keep up with increased demand. I find that odd because I have seen more timber cut down in the last 6 months than I have ever seen before in the same time span, so it's hard for me to believe that there is a lumber shortage, but maybe there is. But with inflation, people will stop or slow way down on spending and when inventory starts piling up at, prices WILL come back down. How long that will take is anybody's guess. Also got to remember that the forest products industry took a major beating in 2008 when our economy tanked. Maybe they're trying to make up for some of that?
-Beef prices are through the roof because of all of this, pork not so much. Butts and boneless loins are on sale every week somewhere around me. Differences between the pork and beef production? Pork is mostly controlled by China and beef by Brazil.
-Fuel prices definitely affect the cost of everything and will be a big driver of inflation in the near term and the future of our economy.
My thoughts are that trees can be left standing, produce and livestock can not. If there is an increase in production along with consumers closing their wallets due to inflated prices and the disappearance of the "FREE" money, prices will come back down.
My wife says that I'm somewhat of a hoarder of food, especially meat. I like to think of myself as an opportunist when I see a good deal on something. We have 2 freezers mostly full and 2 refrigerator/freezers also mostly full.