retail news in context, analysis with attitude

Bloomberg has a story suggesting that “US investors should welcome, not fear, climbing commodity prices,” quoting Nariman Behravesh, a former Federal Reserve officials and current chief economist at consultants IHS, as saying that commodity cost increases are “largely a reflection of the fact that the pace of economic growth, particularly in the U.S., has
picked up.”

Michael Darda, chief economist for MKM Partners, tells Bloomberg that “commodity prices usually move in tandem with U.S. production, income and the stock market, so the increase is a reason to be bullish, not bearish, about the outlook, he said.”
KC's View:
Regardless of whether it is good or bad for the economy, rising commodity costs mean that many stores are going to have to adjust their approach to selling certain kinds of products. They’re going to have to stress “values” in addition to “value.” In the long run, I’m not sure this is a bad thing for the food industry.