According to the Fed Chair Ben Bernanke, inflation is still very low and the economy is improving. So, what is going on here? Why are food prices rising so fast?
Because their preferred measure of inflation is something called the Personal Consumption Expenditures (PCE) index excluding food and energy. This is also known as the Core PCE. They like this one because it based on the way the GDP measures of inflation are calculated. This index, unlike the CPI, reweights itself to reflect the current pattern of consumption. The CPI is a fixed-weighted index and is designed to measure the cost of living rather than the rate of inflation. It has come be one of the standard measures of inflation because it is widely known and widely used. But, truth be told, there is no one way to measure inflation and both the PCE and CPI do as good a job as can be had with the money spent on their calculation.
Maybe we should stop making gasoline out of 30-40% of our corn crop.
Yup. Clip coupons and seek out grocers that give double coupon days. We're so scr****. On the bright side, we might be able to lose some weight if it weren't for the radiation that will destroy our thyroids.
I recommend we all stock up on Miralax.
See Corn prices one year ago and you will partially have your answer. Corn finds its way into many products that sit on your grocery shelves. Corn is fed to livestock so it's rising price funnels into to rising meat prices. Food has to get to the grocer so prices climb again because transportation companies pay higher gas prices. Also, there are higher costs to heat and cool grocery stores that must be passed on. Doing business is more expensive because Obama loves to regulate through the EPA and the Food and Drug administration, etc.....thus drives up prices even more. Thankfully, labor prices are in check. Uh wait, no that's not true either because employers are now beginning to factor in the cost of Obamacare on future employment and those costs will have to passed on to the consumer as well in the form of higher food prices. Isn't this fun to guess what we might be paying at the grocery store in another year or two.