Wendy’s, Costco, And Hyperinflation

I went to Wendy’s and got a single combo.  It was almost $10!  That’s a huge price rise.  It was less than $8 recently, but I wasn’t keeping track.

My sister got a Cosctco card.  I went there with my parents.  They comparison shop and know all the prices.  I don’t bother.  The cost of my time is greater than the savings from shopping around and clipping coupons.  My parents are retired, and have nothing else to do.

In many cases, the price was higher in Costco than in the supermarket!  Superficially, that makes no sense.  When you think about it, it’s a symptom of hyperinflation.  Do you understand why?

In the supermarket, the owner only raises the price when he restocks and see that the price increased.  Costco turns over its inventory rapidly.  Therefore, Costco’s prices are much more sensitive to hyperinflation, compared to a regular supermarket.

When prices go up, Costco raises its prices immediately, whereas a supermarket might not raise them for a few months.  Therefore, in a time of high inflation, Costco prices are greater than the supermarket price.

That was amusing.  Wendy’s jacked up its price.  Costco prices are higher than supermarket prices, because Costco prices are more sensitive to inflation.  Those are interesting indications of hyperinflation.

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