Tuesday, February 28, 2012

Americans to feel the real angst of inflation with rising alcohol prices

Oil and gasoline inflation?  Food inflation?  Try rising inflation for alcohol.

As in the Great Depression and Prohibition, the desire to consume alcohol transcends many ethical and physical needs in the lives of many Americans.  This is why the rising cost to buy beer, liquor, and wine may have a much larger consequence over time than rising prices in food, which the government is more than happy to subsidize.

But if there is one thing that is sure to kindle the revolutionary spirits it is the soaring price of booze. As it just so happens, ships are parked in the Boston harbor with crates of Grey Goose prepped for tossage overboard as we speak. As the following chart of alcoholic beverage inflation indicates, courtesy of John Lohman, January saw the biggest month over month spike in booze inflation in 20 years. In other words, about 90% of all traders alive today have never seen a bigger jump in liquor inflation in their lives. - Zerohedge



So drink up America!  Or better yet, go invest in that beer making device or personal still since the price of food commodities are at the moment cheaper than the finished products.

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