The Labor Department reported Tuesday that prices U.S. consumers paid for groceries jumped 2.6% in April, the largest one-month pop since February 1974. The spike in supermarket prices was broad based and impacted items from broccoli and ham to oatmeal and tuna.

The price of the meats, poultry, fish and eggs category rose 4.3%, fruits and vegetables climbed 1.5%, cereals and bakery products advanced 2.9%, and dairy goods gained 1.5%.

Is it actual inflation or reduced supply? Especially for meat products, there has been many plant closings leading to shortages. In such context, higher prices are due to supply issues, not inflation.

According to data released last week by the Bureau of Economic Analysis, almost all kinds of food have seen an increase in its price since February. Beef and veal prices are up a staggering 20.2% since before the pandemic, while other staples like eggs (10.4%), poultry (8.6%) and pork (8.5%) have also seen significant increases.

@firstbase

I think there is little question that the quality and value of a university degree has diminished over time as well. That's a double whammy.

If you ask me - modern universities now turned into reactionary institutes, they need to be totally changed. As current ones become filled with clerks and bureaucrats hiding under "tutor", "professor" and "scientist" nicknames :-)

LCD panels inflation also starting

According to reports out of Asia, widespread component supply shortages could impact availability on LCD TV panels from TCL owned panel maker China Star Optoelectronics Technology (CSoT) and Innolux, two of the world’s largest LCD panel suppliers.

The display panel manufacturers were reported by Korean electronics business news site The Elec on Monday as warning that supplies of panels are expected to be “tight throughout the year.”

TCL chairman Li Dongsheng used a media briefing last week to announce that panel shortages will continue in the first half of 2021, following conditions already hampered last year during the start of the Covid-19 pandemic.

• "The coronavirus [COVID-19] pandemic is affecting us in terms of getting material to build from local and our overseas third- and fourth-tier suppliers. Suppliers are complaining of [a lack of] available resources [people] for manufacturing, creating major delivery issues." (Computer & Electronic Products)
• "Supply chains are depleted; inventories up and down the supply chain are empty. Lead times increasing, prices increasing, [and] demand increasing. Deep freeze in the Gulf Coast expected to extend duration of shortages." (Chemical Products)
• "Steel prices have increased significantly in recent months, driving costs up from our suppliers and on proposals for new work that we are bidding. In addition, the tariffs and anti-dumping fees/penalties incurred by international mills/suppliers are being passed on to us." (Transportation Equipment)
• "We have experienced a higher rate of delinquent shipments from our ingredient suppliers in the last month. We are still struggling keeping our production lines fully manned. We anticipate a fast and large order surge in the food-service sector as restaurants open back up." (Food, Beverage & Tobacco Products)
• "Overall capacities are full across our industry. Logistics times are at record times. Continuing to fight through shipping and increased lead times on both raw materials and finished goods due to the pandemic." (Fabricated Metal Products)
• "Prices are going up, and lead times are growing longer by the day. While business and backlog remain strong, the supply chain is going to be stretched very [thin] to keep up." (Machinery)
• "Things are now out of control. Everything is a mess, and we are seeing wide-scale shortages." (Electrical Equipment, Appliances & Components)
• "Labor shortages at suppliers are affecting material deliveries and prices." (Plastics & Rubber Products)
• "We have seen our new-order log increase by 40 percent over the last two months. We are overloaded with orders and do not have the personnel to get product out the door on schedule." (Primary Metals)
• "A sense of urgency is being felt regarding new orders. Customers are giving an impression that a presence of stability is forthcoming and order flow is increasing." (Textile Mills)
• "Prices are rising so rapidly that many are wondering if [the situation] is sustainable. Shortages have the industry concerned for supply going forward, at least deep into the second quarter." (Wood Products)

Pure-play foundries United Microelectronics (UMC) and Powerchip Semiconductor Manufacturing (PSMC) will initiate further price hikes of about 10-20% with the new pricing to be effective starting April.