« | »

Food Prices Go Up The Most In 36 Years

From a remarkably forgiving Associated Press:

Wholesale prices up 1.6 pct. on steep rise in food

March 16, 2011

WASHINGTON – Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years.

Funny how that detail didn’t make it into the article’s headline. You would think that is the biggest news of the story.

Excluding those volatile categories, inflation was tame.

It sounds like the AP is trying to make a joke, but they are not. And, what’s worse, the government does not include food or energy in its Core Consumer Price Index (CPI), which is what the Federal Reserve and other government agencies base much of their policies upon.

The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February — double the 0.8 percent rise in the previous month.

Outside of food and energy costs, the core index ticked up 0.2 percent, less than January’s 0.5 percent rise.

You see – the ‘core’ says there is no inflation. In reality it is the depression in the housing market that is keeping over-all non-food and non-energy inflation down. Isn’t that lucky?

Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.

Energy prices rose 3.3 percent last month, led by a 3.7 percent increase in gasoline costs

There was little sign of inflationary pressures outside of food and energy. Core prices have increased 1.8 percent in the past 12 months

Again, when you put aside all the inflation – voila — there is no inflation. It’s like a miracle. Or a shell game.

But economists expect the earthquake in Japan to lower oil prices for the next month or two, which should temper increases in wholesale prices in coming months. Japan is a big oil consumer, and its economy will suffer in the aftermath of the quake

Oil prices fell sharply Tuesday as fears about Japan’s nuclear crisis intensified. Oil dropped $4.01, or 4 percent, to settle at $97.18 per barrel on the New York Mercantile Exchange.

Which makes no sense in the long term, given that the nuclear power industry is going to take a hit worldwide, and consequently, the demand for oil is going to skyrocket.

Food costs, meanwhile, are rising. Bad weather in the past year has damaged crops in Australia, Russia, and South America. Demand for corn for ethanol use has also contributed to the increase.

Prices rose 1 percent for apparel, the most in 21 years. Costs also increased for cars, jewelry, and consumer plastics.

Once again, everything under the sun is blamed except the current administration. Which is just like the way things were under previous Republican Presidents. Wasn’t it?

This article was posted by Steve on Wednesday, March 16th, 2011. Comments are currently closed.

4 Responses to “Food Prices Go Up The Most In 36 Years”

  1. proreason says:

    The war on senior citizens continues:

    – the 2008 meltdown sucked trillioins out of their savings
    – since then, CD rates have been effectively 0%. Same for bonds.
    – stocks are up, but of course, seniors can’t take that risk
    – seniors mostly have small mortgages or no mortgages, so the continuing low rates are irrelevant
    – no senior can get a job, even for minimum wage, not with unemployment at 20%
    – no SS increases in the last 2 years
    – and now “senior inflation” (read: food and fuel) is soaring while “pretend inflation” (read: ipods and ipads) is “under control.
    – medicare was gutted by Obamycare
    – and now the marxist strategy is to go after SS and Medicare to “be fiscally responsible”. One might have thought that the $1 T in payola p.a. that they added to the budget might be a more appealing target, but no, that is sacred spending. The programs that seniors have contribute hundreds of thousands of dollars to, on average, are the ones that must be cut.

    It’s the greatest transfer of wealth in history. From old people to Obamy’s cronies.


  2. Chuckk says:

    Food and fuel prices go up, but this is not inflation.

  3. canary says:

    Food prices went up Obama came in office and started fear mongering said we were in a recession. I think it’s Gauging. And then there’s all the new regulations that farmers must follow. Big food is wrong, because it will bring more bugs.

    Bugs & trees have more individual constitutional rights than human beings.

  4. Liberals Demise says:

    Jimma Carter is the “Thin White Duke” compared to “Hoops dingleBarry”.
    I remember back in the latter 70’s when Jimma sold the ruskies our wheat.
    THEN, we had a (so called) wheat shortage and the ruskies sold us back
    some wheat at a astronomical price.
    I guess there’s no real problem seeing that there is time to pick the “Final Four”
    and jabber on for a full hour.
    Gee……we are lucky to have our “Servant of the People” focused like a laser.

« Front Page | To Top
« | »