The "Food at Home" component of the recent consumer prices report surged almost 5% on an annual basis as grocers passed on to consumers the 12-month jump in corn, rice, sugar and oats.
The measure, defined by the Bureau of Labor Statistics as "total expenditures for food at grocery stores," rose 4.8% during the 12 months ending in June. That's up from a 4.4% annual increase from May's report. Plus, not counting the temporary spike in inflation during the aftermath of the credit crisis, this is the biggest price increase by grocers since 2004.
Prices for corn, rice, and sugar are up more than 60% in the last 12 months. Part of this is because of growing demand in emerging markets, but many investors also say the Federal Reserve's decision to keep interest rates essentially negative for so long is largely to blame for the price spike.
1 comment:
It is not the interest they charge on the counterfeit money.
It is the creation of the money itself that causes "inflation". The Fed has inflated the money supply - tremendously.
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