A good indicator is the price of beer.
Related story’s
Gas pump prices highest ever for this time of year
See full article from DailyFinance: http://srph.it/gJK1JI
Corn Surges on Short Supply
http://www.bloggingstocks.com/2011/02/10/corn-surges-on-short-supply/#continued
Get ready for higher food prices
http://www.omaha.com/article/20110210/NEWS01/702109884/0
For years, I've been telling people to look at the inflation figure that includes food and energy, if they think it's that important. I've never understood why people cannot walk and chew gum at the same time.
Not only have they stripped out food and energy but the Clinton revision to the CPI made in the early 90’s dramatically changed even the so-called core inflation numbers. Real world inflation right now is much closer to 10% than the bogus numbers being reported. I think shadowstats.com which uses the pre Clinton CPI formula for comparison tells the real story.
Not that they are to be ignored, but technically a sound argument can be made as to why they are not tied to the core rate of inflation. Obamma and the fed are just using this as political cover, hoping for some relief in six to ten months, and with QE2, that sure ain't gonna happen.
The CPI that is used to index nearly all items like social security DOES include Food and Energy.
The “Core CPI” is only used for discussion, not real policy or adjustments.
Which index is the “Official CPI” reported in the media?
http://www.bls.gov/cpi/cpifaq.htm#Question_13
...while we publish many indexes, our broadest measure of inflation includes all items consumers purchase, including food and energy.
http://www.bls.gov/cpi/cpiadd.htm#2_3
In fact, we should enforce a 25% MMR rule for these items:
1) Stock index futures for certain financial companies.
2) Certain foodstuffs like wheat, corn, rice, sugar cane, sugar beets, oats, soybeans, millet, oranges, cacao beans, tea and coffee beans.
3) Crude oil regardless of source.
4) Certain industrial metals like aluminum, iron, copper, nickel, tin and titanium.
5) Precious metals (gold, silver, platinum and palladium).
These changes would drive out the "make a fast buck" speculators and results in far more stable pricing, with much less risk of sudden inflationary or deflationary spikes and dips.
But the prices of food and energy can rise dramatically even in the absence of inflation. Supply and demand determine that. Of course, in the absence of inflation, rising food and energy prices will necessarily result in a drop in other prices.
Now, it is likely that rising oil prices are due to speculation driven by inflation: banks have gobs of Fed-given money to invest and are helping to bid up the price.
Food prices are more difficult to pin down, though. There have been crop failures due to bad weather around the world and the drop in supply is certainly a big factor. In the US, we're seeing higher food prices, in part, due to the government's foolish ethanol policy -- again, this is a drop in supply causing the rising prices.
So, it isn't altogether foolish to exclude both from the CPI, especially month over month. All that said, the CPI is rubbish anyway. It means about as much as the global average temperature.
For a really depressing view of where we stand, take a look at this Freeper’s reply on real inflation in America over the first two years of Obama’s Presidency.
http://209.157.64.200/focus/news/2672501/replies?c=12
I was at a seminar this week with a respected investment manager/statistician. He says the current rate of real inflation is about 2.5%.
check out this website for real inflation and unemployment rates
shadow stats
shadow stats
shadow stats
shadow stats
shadow stats
The legitimate way to deal with the “volatility” of food and energy prices is not to compute a pseudo-price-inflation-rate by excluding them, but to report a running average of the inflation rate including them.
We don’t have two years to deal with this green agenda on energy.
Anyone who has been watching food prices for the past year KNOWS that inflation is NOT just now showing up, it’s been showing it’s ugly head for months.
Bernanke just has his head so far up his keester or he’d have admitted it already.
I think someone does ALL his shoping for him; he’s so out of touch with the real practical world of the economy he is helping to produce.
obastard is trying to drive the American people ito the streets so he can declare martial law.
This is the time of year I order seeds for the garden this summer.
The cost of those seeds has doubled.
Just another indication of inflation.