Inflation is raising prices on almost everything, except rotisserie chicken(npr.org)
npr.org
Inflation is raising prices on almost everything, except rotisserie chicken
https://www.npr.org/2022/06/07/1103451833/rotisserie-chicken-price-inflation
4 comments
> this is a subsidy
Loss leader [1].
[1] https://en.wikipedia.org/wiki/Loss_leader
Loss leader [1].
[1] https://en.wikipedia.org/wiki/Loss_leader
Aren't those just chickens that didn't sell and have to be tossed or used?
Although the article doesn't use the word, this is a subsidy. It's not unlike the subsides that governments give to keep certain prices such as fuel and food low. It's also similar to the currency peg that certain governments set for their own currencies relative to another.
It strikes me that the stores are kind of running a peg on two commodities whose supply they have no control over: chickens and dollars.
If you can't control the supply both sides of the peg, it will eventually fall. Depending on how important that peg is to your image, you might be able to absorb considerable pain along the way.