Food prices are an excellent indicator of inflation. If I purchased a loaf of bread for 75¢ back in 1970, according to the Consumer Price Index, that same loaf should cost me $4.58 today (511% inflation over the last 44 years).
Looks like we are in for a spike due to the contracting economy - from Mac Slavo writing at Doug Ross:
FOOD PRICES SURGE AGAIN: Is the Inflation Genie Out of the Bottle?
While government statisticians claim robust growth, recent data points suggest otherwise. Consumers are quickly running out of money, home sales have collapsed and hit their biggest drop in three years, there are more Americans out of the labor force than ever before, and one third of adults under the age of 35 are living with their parents because they can no longer afford to pay their own mortgage.By all accounts, the reality is that we are now factually in a recession, a point further emphasized by the recent revelation that American companies are experiencing near zero percent earnings growth.
But that’s just the beginning. As we warned earlier this year, food prices would see a steady rise through 2014 because of increased global demand, drought and continued degradation of the U.S. dollar.
The Producer Price Index made available by the Bureau of Labor and Statistics this morning has now confirmed those fears. Consumers are seeing an immediate impact to their wallets in the form of food price inflation and in all likelihood the trend will continue going forward.
Lulu and I have expanded our garden and are buying some foods in bulk. Going to be a long hard ride until we get some adults in control in Washington...
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