The Tyson Foods company, which is the top chicken producer in the United States, has confirmed during an earnings call that food inflation is continuing to go higher and push prices upward.
Tyson’s CEO Donnie King revealed that higher costs are hitting the company faster than they can increase their prices, and retail prices are scheduled to increase on Sept. 5.
King must have had a mental hick-up during the group earnings call because the term “transitory” was not a part of his conversation.
Everything from labor to fuel to raw materials (soybeans and corn) to shipping to other inputs crucial for farming has gone up exponentially over the past year.
None of this should come as a surprise as we have referenced two Bank of America reports that said that “transitory” hyperinflation was not only ahead but has actually already arrived.
In May, Bank of America said, “Buckle up! Inflation is now here,” and then they revealed a chart of the number of times “inflation” was mentioned during earnings conference calls which shows the term had exploded, more than tripling for every firm so far, and the largest jump in history since Bank of America started keeping records starting in 2004.
The bank ended with the take that this “points to at least transitory hyper-inflation being ahead.”
Then in the month of June, Bank of America’s economist Alex Lin said that the “transitory inflation” meter is at an all-time high right now, “suggesting there was significant room for a pullback over the next twelve months.”
Lin’s note supports what the bank said back in May: that the United States is currently in a time of hyperinflation, and the bank is also hopefully right that this will simply be transitory.
Whether it really does turn out permanent or transitory, remains a worrisome question – but evidence seems to be mounting, now with Tyson, that food prices are yet to peak and are still going up.
This is sure to be one of the most significant economic events in America’s history. With the pandemic triggering never before seen affects, the reality of what could happen is limitless.
Author: Scott Dowdy