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McDonalds Hikes Japanese Burger Prices By 20%
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / By Tyler Durden / April 18, 2013, 20:46 -0400
As we have been warning for a while now, Japan wanted inflation and is certainly getting it, just in all the wrong places.
While Abe has been desperate to transfer the collapse in the yen and the (transitory) surge in the Nikkei to the all important increase in wages, and the much sought-after wealth effect, the reality is that corporate input costs are rising far faster than revenues, and wages will be the last thing profit and earnings-conscious companies raise.
As for the Japanese consumer, trained by 30 years of deflation, any profits in the stock market will be promptly converted to cold hard cash and bank deposits which represents that vast majority of Japanese financial assets, which means a double whammy for companies who will also see a drop in sales volumes, crushing margins even more as a result.
One company which could no longer tolerate soaring energy and food costs (both of which we described previously here and here), is McDonalds, and as the FT reports, the fast-food chain announced today that the price of its entry-level hamburger would increase by 20% from ¥100 to ¥120, while a cheeseburger would now cost ¥150 instead of ¥120.
This is the first price increase by McDonalds Japan, the largest corporate affiliate outside of the US which runs 3,300 local fast food restaurants, in five years.
Thanks to BrotherJohnF
2013-04-18 20:17:36
Source: http://silveristhenew.com/2013/04/18/mcdonalds-hikes-japanese-burger-prices-by-20-2/
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