Shopping Discussion

Inflation and Consumer Goods (Including Electronics)

  • Last Updated:
  • Aug 14th, 2021 8:37 am
[OP]
Deal Expert
Feb 24, 2018
24366 posts
31289 upvotes

Inflation and Consumer Goods (Including Electronics)

It appears we're seeing evidence of an overheating economy in the US.
The producer price index for final demand increased at a 7.8% pace for the 12 months ended July, according to the Labor Department. The July print was faster than the 7.3% pace recorded in June and ahead of the 7.3% rate that analysts surveyed by Refinitiv were expecting. The reading was the strongest since recordkeeping began in November 2010.

Source: https://www.foxbusiness.com/markets/pro ... diate=true

I'll avoid addressing the why. Instead this thread addresses the consequences to consumer goods.

Going into the holiday winter buying season, things are not looking good for price stability. Raw input shortages (e.g. costly energy), intermediate product shortages (e.g. semiconductor components), and general shortages in various final goods (many examples) stretch across the value chain.

As a result, it's not looking great for deep discount holiday sales. Some consumer products may even rise from current levels, before Christmas, such that they promote a meagre discount as a holiday sale.

Electronics as a category may find itself with offsetting inflation, despite natural industry deflation.
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2 replies
Deal Guru
Dec 5, 2006
13064 posts
8311 upvotes
Markham
Also depending on current covid situation in China. If it last longer and more ports are locked, we might see shortages in Black Friday and Christmas season.

Good for wallet, I am fine with it
Deal Fanatic
User avatar
Jan 16, 2011
7177 posts
9151 upvotes
The NORTH
smartie wrote: Also depending on current covid situation in China. If it last longer and more ports are locked, we might see shortages in Black Friday and Christmas season.

Good for wallet, I am fine with it
How has the flooding been? Has it subsided? The infrastructure that was damaged from the floods will take time to repair as well. It's bee a rough couple years for China.

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