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Monster Munch (Corn Price) Deflation

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One for the hyperinflationists........or maybe not

http://www.bondvigilantes.com/blog/2013/08/13/monster-munch-update-a-victory-for-bondvigilantes-com/

But wait, it gets better. Back in October 2011, the M&G coffee shop charged 45p for 22g, or 2.05 pence per gram. Today, the same shop charges 65p (RRP 50p) for a 40g packet, or 1.63 pence per gram. This is a fall of 20.5% in nominal terms. Put simply, you are also getting more for you money.

However, before we applaud the manufacture for their largesse, let’s look at the main raw material. Back in October 2011, we pointed out that the headline cost of Monster Munch closely followed the corn price.

Since October 2011 the corn future has fallen by around 28.5% in price to $4.64 per bushel, a rare case of deflation in recent times. In sterling terms, the fall is around 25.5%. Accordingly, the dramatic fall off in corn prices has allowed the manufacturer to pass on part of this benefit to consumers, reducing the headline per gram price, but at the same time retaining some of the benefit in the form of an enhanced profit margin.

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One for the hyperinflationists........or maybe not

http://www.bondvigil...vigilantes-com/

http://www.bondvigil...vigilantes-com/

'A rare case of deflation in recent times'.

The 2008 spike was created with speculative cash run off from the deflating housing bubble; ditto the 2008 oil + gas spikes.

Pretty much straight up after that.

The US drought in 2012 held up a modest correction. Inreasing corn yields have helped moderate prices too.

289109-25-years-of-corn-futures-prices.jpg

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The 2008 spike was created with speculative cash run off from the deflating housing bubble; ditto the 2008 oil + gas spikes.

Pretty much straight up after that.

Err.....it halved after that temporary spike due to falling dollar.

Followed by the temp spike in '12 due to drought, and has been deflating since then.

It's not rocket science is it.

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Do they still do flamin' hot flavour? They taste amazing.

I love 'em too. Once I ate a whole 12-pack in one go. I don't recommend it, my gums were burning for days afterwards.

7p a packet back in 1978!

Edited by Eddie_George

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