Aguila Blanca said:
The price of ammunition is largely driven by the cost of the components.
Yes, and there's an interesting angle to the charts you posted. Let me take the beginning number on each chart and adjust it for inflation using the gov't CPI inflation calculator, and compare that to today's copper price according to the same website, Infomine.com.
Copper on 3 Jan 89: $1.55. Adjusted for inflation: $3.02. Copper on 26 Nov 2016: $2.65.
Lead on 3 Jan 89: $0.35. Adjusted for inflation: $0.68. Lead on 26 Nov 2016: $1.01.
Lead has gone up by 48% but copper is down by 12%. Cartridges contain more lead than copper by weight, but copper is so much expensive that the prices offset each other to some degree. Basically, we're essentially back to the starting point on the graphs in terms of metal prices.
The historically low price of ammo in the mid to late 1990s was caused by low and stable metal prices (readily apparent on the graphs) combined with the sudden appearance of ammo from recently-idled military plants in former Warsaw Pact countries onto the Western commercial market—a combination of factors that will not reoccur.
There was a TFL thread from about 1-2 years ago comparing today's retail ammo prices to those in the 1960s and 1970s, and the general consensus is that they're slightly lower today once adjusted for inflation.
50 shooter said:
It's only been about a decade since a brick of 500 .22 was $9 at Walmart and there was never a shortage!
I've heard several people theorize that the popularity of cheap rapidly-reloadable large-capacity faux-EBR .22LR semi-autos has increased the number of shooters who are likely to burn through 1,000+ rounds in an afternoon, thus increasing the demand for cheap .22LR bulk packs. IMHO this theory has some merit; I don't think it's only the hoarders who have driven prices up. This theory aligns nicely with the fact that Mini-Mags are once again widely available for $8/100 at my local discount stores, as is SV target ammo for $4/50, but bricks seem to fly off the shelves for $25/500. I don't think the $8.88 Federal 550 is coming back.