Bill Simon Warns of "Serious" Inflation in the United States
When the CEO of Walmart says that "serious" inflation is coming to the United States, you should probably listen. According to the USA Today (link below), Walmart CEO Bill Simon was quoted as saying that inflation in the United States is "going to be serious" and that "we're seeing cost increases starting to come through at a pretty rapid rate".
In his interview with the USA Today, Simon claimed that clothing, food and many other items will rise in cost due to inflation over the coming months. Simon also said that Walmart is in the best position to mitigate this inflationary pressure thanks to their extensive relationships with suppliers.
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As we've mentioned many times before, food and energy prices are currently surging higher throughout the world thanks to a number of different reasons. Unrest in North Africa and the Middle East has caused energy prices to spike. Unexpectedly low temperatures in Mexico have caused the price of many vegetables, including tomatoes, bell peppers and eggplants, to spike in price. In addition, many countries have stockpiled food rations in order to counter unrest, which has also caused global food prices to spike higher.
On top of all of that, growth in countries such as China, India and Brazil has resulted in greater demand for meat, grains and other foodstuffs.
In short - a "perfect storm" has resulted in inflationary pressure that will contain to hit the wallet of an already strained American consumer.
You might want to check your food even more closely over the coming weeks and months..
Source: USAToday.com - Wal-Mart CEO Bill Simon Expects Inflation
Filed under: General Knowledge
