--cost of raw materials has skyrocketed due to increased demand by china and india.
I've run the numbers, and this argument is wrong. Its like 10%, max.
--transportation costs are up because of the high price of fuel
The entire cost of shipping by sea averages about 1% of the cost, and only a fraction of that is for fuel. Shipping by land would be more, but still not that much.
--domestic production is being diverted to meet military needs because of the war on terror, or Iraq, or whatever they are calling it now.
This is the only argument that I've heard that makes any sense. ATK raises its prices... I swear, at my local gunshop, next to every case of Federal and Speer, is a letter from ATK announcing a price increase, as if the owner wants to prove to customers that he's not gouging them...and then the other ammo companies raise their prices in turn.
I think devaluation of the dollar against foreign currencies is a major factor, followed by a circular pattern of paranoia set off by ATK. With every price increase, people freak out and think,
I've gotta buy a ton of ammo before the next price increase and so the ammo companies think, hey, that last price increase didn't hurt demand at all, let's try it again.
Ammo is the #1 cost of shooting except for those who buy guns just to have one, not to shoot. This INSANITY has got to stop somewhere. I hope.