The Economic Signal Sent by Cheap Guacamole

Chipotle, the chain of Mexican-style fast-food restaurants, isn't going to raise the price of its guacamole this year even though prices of avocados have increased. 

Bloomberg News reports that Chipotle, the chain of Mexican-style fast-food restaurants, isn't going to raise the price of its guacamole this year even though prices of avocados have increased. The company said that it made little sense to risk alienating customers over a temporary surge in ingredient costs. The article goes on to suggest that some at the Federal Reserve might interpret this as a sign of the economy's continued weakness, as well as a possible harbinger of deflation.

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