“According to the USDA, the poorest households spent an average of 36 percent of their disposable personal incomes on food in 2019… As their incomes rise, households spend more money on food, but it represents a smaller overall budget share. In 2019, households in the lowest income quintile spent an average of $4,400 on food (representing 36.0 percent of income), while households in the highest income quintile spent an average of $13,987 on food (representing 8.0 percent of income) “
”As I noted above, the price of corn has increased 142 percent since this time last year… Corn prices have jumped roughly 142% over the past year to $7.56 per bushel,
the highest price seen in eight years for the crop.
A drought in Brazil and increased demand in China have put pressure on global suppliers. “
“In other areas, we are seeing more moderate inflation, but overall we just witnessed the largest increase in food inflation “in almost nine years”…
The average prices in March of 2021 for pork chops and chicken breasts are both up more than 10% compared to March of 2020.
Eggs and cheddar cheese are both up 6%.
Looking at all consumer goods as a whole, the latest inflation data in the Consumer Price Index from the U.S. Bureau of Labor Statistics shows the largest month-to-month increase in almost nine years.”
“ Boston Federal Reserve President Eric Rosengren in an interview with MarketWatch on Wednesday dismissed talk of scaling back asset purchases as premature,
and said temporary factors pushing up inflation this spring won’t last.
“My view is that this acceleration in the rate of price increases is likely to prove temporary,” Rosengren said Wednesday.
Do you believe him? I don’t. “
All these folks are sitting at home collecting government money, so fewer goods overall are likely being produced. All that money chasing fewer goods = inflation.
“My view is that this acceleration in the rate of price increases is likely to prove temporary,” Rosengren said Wednesday.
Do you believe him? I don’t. “
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No I don’t believe him. I remember a time when the first class stamp cost 3 cents. I remember when gas for the car was 33 cents per gallon. I remember when hamburger cost 33 cents per lb.
The question is not will there be inflation - that’s a resounding yes. The question is will it be galloping double digit-such as we had during Carter and Early Reagan years, or something worse-like we have seen in Venezuela?
I have considered buying food for long term storage as an investment that is just as important a part of a balanced portfolio as any other asset.
And by the way - lumber prices - We purchased a big supply to build a shed less than a year ago. Two by Fours are now priced at 3 times what we paid then. - That’s 300% in less than a year (for those of you living in Rio Linda).
My seed stash looks better and better every day. And my chickens are laying eggs faster than we can use them. I’ve even started waterglassing some.
I’ve been stocking up on canning lids every chance I get. Mostly Tattlers, but I’ve also been buying some of the off-brand single-use kind. I figure the off-brand should hold up fine for waterbath canning, but I’ll stick with the name-brand or the Tattlers for pressure canning.
I have no idea if it’s going to get as bad as some people are predicting. But self-sufficiency is it’s own reward.