Saturday, August 23, 2014
Inquirer Daily News

Forget 'flat' CPI: Prices up at Wal-Mart, dollar stores

Stock analyst says store checks show retail prices are rising, despite US consumer data that claims prices are flat.

Forget 'flat' CPI: Prices up at Wal-Mart, dollar stores

The view inside a Family Dollar store. (Photo from glassdoor.com)
The view inside a Family Dollar store. (Photo from glassdoor.com)

"Inflation is hardly anywhere to be found," writes Philadelphia economist Joel Naroff, citing the U.S. Department of Labor's go-back-to-sleep consumer price report for August.

Actually, at Wal-Mart, the nation's largest retail chain, prices are "going up, not down," writes Charles Grom, New York-based retail analyst at Birmingham, Ala.-based Stern Agee & Co. This "despite (the) rhetoric" of Wal-Mart's claims that the company "invests in price," he added.

Gorm checked prices at Dollar General, Family Dollar and Wal-Mart stores in New Jersey, and "surprisingly" found retail prices rose for a basket of 42 consumer items at each of the three chains during August: 1.8% at Wal-Mart; 1.1% at Dollar General, reversing an earlier-in-the-year decrease; and by a modest 0.1% at Family Dollar. The increases are across-the-board and not concentrated on some categories.

Also: Wal-Mart still has the cheapest groceries, by up to 10%; Family Dollar has cheaper housewares and pet stuff, by about 4%. But rising Wal-Mart prices, relative to others', mean the chain is not that much cheaper, overall, than the dollar stores (around 3% on average).  Cigarettes still cost about $7.40 a pack at the chains (a few cents cheaper, on average, at Family Dollar).

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Inflation still in check
Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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