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US Food Inflation Spiraling Out of Control
marketskeptics.com ^
| Friday, April 23, 2010
| Eric deCarbonnel
Posted on 04/25/2010 4:17:08 PM PDT by JerseyHighlander
by Eric deCarbonnel
PRnewswire reports that US Food Inflation Spiraling Out of Control.
(emphasis mine)
U.S. Food Inflation Spiraling Out of Control
FORT LEE, N.J., April 22 /PRNewswire/ -- The National Inflation Association today issued the following food inflation alert to its http://inflation.us members:
The Bureau of Labor Statistics (BLS) today released their Producer Price Index (PPI) report for March 2010 and the latest numbers are shocking. Food prices for the month rose by 2.4%, its sixth consecutive monthly increase and the largest jump in over 26 years. NIA believes that a major breakout in food inflation could be imminent, similar to what is currently being experienced in India.
Some of the startling food price increases on a year-over-year basis include, fresh and dry vegetables up 56.1%, fresh fruits and melons up 28.8%, eggs for fresh use up 33.6%, pork up 19.1%, beef and veal up 10.7% and dairy products up 9.7%. On October 30th, 2009, NIA predicted that inflation would appear next in food and agriculture, but we never anticipated that it would spiral so far out of control this quickly.
The PPI foreshadows price increases that will later occur in the retail sector. With U-6 unemployment rising last month to 16.9%, many retailers are currently reluctant to pass along rising prices to consumers, but they will soon be forced to do so if they want to avoid reporting huge losses to shareholders.
Food stamp usage in the U.S. has now increased for 14 consecutive months. There are now 39.4 million Americans on food stamps, up 22.4% from one year ago. The U.S. government is now paying out more to Americans in benefits than it collects in taxes. As food inflation continues to surge, our country will soon have no choice but to cut back on food stamps and other entitlement programs.
Most financial experts in the mainstream media are proclaiming that the recession is over and inflation is not a problem in the U.S. Unfortunately, they fail to realize that rising food and gasoline prices accounted for 58% of February's year-over-year 3.85% rise in retail sales. NIA believes price inflation is beginning to accelerate in many areas of the economy besides food and energy, and all increases in U.S. retail sales this year will be entirely due to inflation.
My reaction: US food inflation is spiraling out of control.
1) Food prices for the month rose by 2.4% in March, the largest jump in over 26 years.
2) Some of the startling year-over-year food price increases include:
fresh and dry vegetables up 56.1%
fresh fruits and melons up 28.8%
eggs for fresh use up 33.6%
pork up 19.1%
beef and veal up 10.7%
dairy products up 9.7%
A major breakout in food inflation could be imminent
1) The PPI foreshadows price increases that will later occur in the retail sector.
2) Many retailers are currently reluctant to pass along rising prices to consumers, but they will soon be forced to do so to avoid going out of business.
3) Food stamp usage in the U.S. has now increased for 14 consecutive months.
4) The US government is now paying out more to Americans in benefits than it collects in taxes.
No Economic Recovery
1) Rising food and gasoline prices accounted for 58% of February's year-over-year 3.85% rise in retail sales.
2) As inflation accelerates, all increases in U.S. retail sales this year will be entirely due to inflation.
Conclusion: Things are going to get ugly in the US this summer. See *****2010 Food Crisis for Dummies***** for details.
TOPICS: Agriculture; Business/Economy; Food; Gardening
KEYWORDS: 2010; bhoeconomy; democrats; economy; elections; food; gardening; inflation; obama; ppi; preppers
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Been a strange 2 years in many ways, I was dumbfounded when I added up all my supermarket receipts for this month.
Today this article comes through my rss reader.
To: JerseyHighlander
I looked out at the garden and I didn't see any inflation. The chickens look ok as well. Wild hogs are a problem in Texas and legal to hunt at night. Flour, sugar, and lard have gone up some, but who buys those more than once a quarter?
/johnny
To: JerseyHighlander
Boy....
I have a friend a diesel wonk that tells me the new trucks and their fancy emission systems deal with a great deal of thermal stress and may not have the longevity that their predecessors had. That means more rebuilds sooner and greater fleet cost passed on to consumers. When will that be added to this inflationary mix?
3
posted on
04/25/2010 4:22:24 PM PDT
by
taildragger
((Palin / Mulally 2012 ))
To: JerseyHighlander
“we can’t eat as much as we want to, drive as much as we want to, turn our thermostats as low as we want to.....”
“skyrocket electric rates” are necessary under his energy plan
What should we have expected?
4
posted on
04/25/2010 4:27:43 PM PDT
by
GeronL
(http://libertyfic.proboards.com << Get your science fiction and fiction test marketed)
To: JerseyHighlander
It took these morons this long to figure this out?!?! Food prices have been going up well, since for forever now.
5
posted on
04/25/2010 4:31:32 PM PDT
by
pnh102
(Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
To: Diana in Wisconsin; gardengirl; girlangler; SunkenCiv; HungarianGypsy; Gabz; billhilly; Alkhin; ...
Pinging the Weekly Gardening Thread.
Food for your soul - if you can afford it!
6
posted on
04/25/2010 4:34:12 PM PDT
by
Red_Devil 232
(VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)
To: JerseyHighlander
My usual ground turkey went up something like 40% this week alone.
7
posted on
04/25/2010 4:38:29 PM PDT
by
cripplecreek
(Remember the River Raisin! (look it up))
To: JerseyHighlander
Meet Ribeye Joe and Sir Loin . . . beef @ $2.00 +/- per pound.
To: cripplecreek
A pound of dry spaghetti used to be $0.89 and on sale 2/$1 pretty regularly just a year ago .... the store brand is now $1.59 and is on sale this week for $1.25 ... vegetables are through the roof and not just the fresh ,, canned also. You used to be able to but a 12 ounce can of SPAM at the dollar store but they’re priced out of those markets now and are over $2 at the supermarket.
To: taildragger
I can believe that. Fix something that ain’t broke. Give me a V8 engine anytime.
10
posted on
04/25/2010 4:46:39 PM PDT
by
freekitty
(Give me back my conservative vote; then find me a real conservative to vote for)
To: All
11
posted on
04/25/2010 4:47:28 PM PDT
by
Cindy
To: Red_Devil 232; All
Bookmark this site and check it every month to remind yourself that you’re NOT just imagining rising prices across the board. (As of April 14, 2010):
http://www.bls.gov/news.release/cpi.t01.htm
The other poster had a good point when s/he said that grocery prices have ALWAYS been going up, but it needs to be tied to current-day inflation and unemployment and the economy as a whole to see if it’s in line with history, or where the spikes are (*cough* ‘Rats running Congress *cough*).
12
posted on
04/25/2010 4:51:11 PM PDT
by
Diana in Wisconsin
(Save the Earth. It's the only planet with Chocolate.)
To: Red_Devil 232
Two words. SURVIVAL GARDEN! Mine is in. Grean beans coming up, Toms looking good, snow peas up, Black berries have greened up well, and the strawberries are loaded with berries already. Saw some tiny blue berries on my bushes this morning.
13
posted on
04/25/2010 4:51:55 PM PDT
by
GailA
(obamacare paid for by cuts & taxes on most vulnerable Veterans, retired Military, disabled & Seniors)
To: freekitty
>>Give me a V8 engine anytime.<<
I don’t think they taste very good. For that matter, neither does the juice without vodka, Tabasco, horseradish, pepper and vodka.
14
posted on
04/25/2010 4:52:17 PM PDT
by
freedumb2003
(Craven spirits wear their master's collars but real men would rather feed the battlefield's vultures)
To: JerseyHighlander; All
15
posted on
04/25/2010 4:55:08 PM PDT
by
Diana in Wisconsin
(Save the Earth. It's the only planet with Chocolate.)
To: GailA
Great Granny called hers a Victory garden. I think I like that better.
16
posted on
04/25/2010 4:55:49 PM PDT
by
cripplecreek
(Remember the River Raisin! (look it up))
To: JerseyHighlander
17
posted on
04/25/2010 4:56:43 PM PDT
by
Lorianne
To: freedumb2003
18
posted on
04/25/2010 4:56:48 PM PDT
by
freekitty
(Give me back my conservative vote; then find me a real conservative to vote for)
To: freedumb2003
19
posted on
04/25/2010 4:58:36 PM PDT
by
nomad
To: JerseyHighlander
I keep detailed records of my household budget and my food bill has grown at least 15% to 20 % in the last 18 months.
I've been threatening to put a garden in and I'm going do it.
20
posted on
04/25/2010 4:59:42 PM PDT
by
Popman
(Balsa wood: Obama Presidential timber)
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