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Hidden Inflation: Food Prices Flying Under the Fed's Radar
Money Morning ^ | 1/28/2011 | JASON SIMPKINS

Posted on 01/28/2011 1:14:42 PM PST by FromLori

Soaring food prices have been, perhaps, the most pressing global issue of the past two years – yet the U.S. Federal Reserve has taken a "hear no evil, see no evil, speak no evil" approach to the global crisis.

Instead, the Fed has dutifully maintained its focus on so called "core inflation" in the United States – even as Americans suffer the consequences of the "hidden inflation" the government refuses to account for.

The Federal Reserve excludes food and fuel prices from its preferred gauge of inflation because they are often influenced by erratic weather patterns and political turmoil. That at times has been the case over the past few years.

(Excerpt) Read more at moneymorning.com ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events
KEYWORDS: bananarepublic; commodities; economy; food; foodcrisis; foodinsecurity; foodprices; foodriots; foodshortage; foodshortages; inflation; qe2; stimulus; yeswecan
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Thanks a lot banana ben
1 posted on 01/28/2011 1:14:48 PM PST by FromLori
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To: FromLori
because they are often influenced by erratic weather patterns and political turmoil.

The Soviet Union suffered 70 years of bad harvests "due to inclement weather".

This bad weather ran along political boundaries and disappeared at the same time the Soviet Union did. It was the damnedest thing.

2 posted on 01/28/2011 1:17:59 PM PST by agere_contra (Historically every time the Left has 'expanded its moral imagination' the results have been horrific)
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To: FromLori

It has not been under their radar, it’s been under their carpet.


3 posted on 01/28/2011 1:18:58 PM PST by blackdog
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To: FromLori
Not hidden to anyone that's been grocery shopping the past two years.
4 posted on 01/28/2011 1:20:00 PM PST by ladyvet ( I would rather have Incitatus then the asses that are in congress today.)
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To: blackdog
It has not been under their radar, it’s been under their carpet.

Very nice!

5 posted on 01/28/2011 1:21:11 PM PST by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: FromLori; Nachum

Seedless grapes at the Navy Commissary here in Memphis were $4.00 a lb 2 weeks ago. Food prices have skyrocketed out of site. Detergents, shampoo, cleaning supplies, TP, etc even more so.

Better learn to use COUPONS to cut your grocery bill. And buy sale items you have coupons for for your basic stock pile. Especially things like TP, cleaning products, detergents, hair grooming aid, etc.


6 posted on 01/28/2011 1:22:49 PM PST by GailA (2012 rally cry DEMOCRATS and RINOS are BAD for the USA!)
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To: FromLori
Mega corps have no desire to see their profits reduced...

Plan on paying twice as much for less, as they reduce the size/quantity of their products, while attempting to charge your more.

My advise?

If ya don't absolutely need it, don't buy it.

Leave it on the shelf.

Grow food in containers if need be. It works quite well with a little effort.

7 posted on 01/28/2011 1:22:49 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: agere_contra

Been watching the Talking Heads on CNN et. al. prattling on about the revolution in Egypt & Tunisia. Wonder how much of the initial unrest was due to rising world food prices? Nobody seems to mention that.


8 posted on 01/28/2011 1:23:02 PM PST by Tallguy (Received a fine from the NFL for a helmet-to-helmet hit.)
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To: ladyvet

Roger that!

I was just there and was shocked to see bumblebee tuna 2 for a dollar.

I haven’t seen a 50c can of tuna in a long time.


9 posted on 01/28/2011 1:25:12 PM PST by mylife (Opinions: $1.00 ~ Halfbaked: 50c)
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To: FromLori

So the government and the banks that own it are lying to us??? I’m shocked! Just shocked.


10 posted on 01/28/2011 1:26:27 PM PST by Bryanw92 (We don't need to win elections. We need to win a revolution.)
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To: ladyvet

They decreased the capacity of our carts about a year ago to 1/4 capacity, because people were having shock when the bill was tallied.


11 posted on 01/28/2011 1:27:22 PM PST by mylife (Opinions: $1.00 ~ Halfbaked: 50c)
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To: ladyvet

They decreased the capacity of our carts about a year ago to 1/4 capacity, because people were having shock when the bill was tallied.


12 posted on 01/28/2011 1:27:37 PM PST by mylife (Opinions: $1.00 ~ Halfbaked: 50c)
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To: GailA

Grapes here (Omaha, NE) also up to as much as $4.48/lb the past few weeks. Hoping it is just seasonal. But yes, many products inching up a few cents very couple weeks. Our overall weekly grocery bills are easily up 20% over about 2 years ago, with no significant change in foods or products purchased. I use coupons and go for loss leaders, shop at a couple other nearby stores for their loss leaders when I can get some quantity.


13 posted on 01/28/2011 1:28:57 PM PST by NEMDF
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To: FromLori

Went to our neighborhood WalMart grocery store this morning and found lettuce at $1.98 a head, at that price they can keep it. Oh I live in North Texas.


14 posted on 01/28/2011 1:29:41 PM PST by engrpat (A village in Kenya is missing their idiot...lets send him back)
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To: NEMDF

By my “chef boyardee index” many items have doubled in price.


15 posted on 01/28/2011 1:30:02 PM PST by mylife (Opinions: $1.00 ~ Halfbaked: 50c)
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To: engrpat

It’s usually like $1.25
That is a substantial increase. Almost double


16 posted on 01/28/2011 1:32:06 PM PST by mylife (Opinions: $1.00 ~ Halfbaked: 50c)
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To: FromLori

Grow your own food, folks. And no, that’s not been outlawed (re. bills regulating commercial farming).


17 posted on 01/28/2011 1:33:29 PM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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To: GailA

Coupons? Absolutely.

I look for sale items all the time now. We have a discount store called Smart and Final here. They sometimes have discounts on certain produce. I have learned to vary my choices to match those sales!

This morning, grapes were on sale as a ‘loss leader’. They were $4 lb last week, and these were less than half. That is how we shop now.


18 posted on 01/28/2011 1:35:10 PM PST by Nachum (The complete Obama list at www.nachumlist.com)
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To: windcliff
I went to the local store the other day and I was shocked at the prices of food. They wanted 80 cents for a cucumber. I told the grocer where he could stick it. He said, TOO LATE there's a 75 cent banana up there already.

Seriously though, we the consumers have known this for a long time. It is CONVENIENT how they exclude energy and food from their inflation figures.

19 posted on 01/28/2011 1:36:29 PM PST by I Drive Too Fast
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To: I Drive Too Fast

BwaaHaaHaa!


20 posted on 01/28/2011 1:40:23 PM PST by mylife (Opinions: $1.00 ~ Halfbaked: 50c)
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To: engrpat

How about the packages shrinking now you have to buy 2 can’s of things to fit a recipe. It’s terrible but I think it will get even worse.


21 posted on 01/28/2011 1:41:56 PM PST by FromLori (FromLori">)
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To: FromLori
The Federal Reserve excludes food and fuel prices from its preferred gauge of inflation

There you go. The 2 items everyone is most conscience of.
Food is way up. Kraft mayo in 30 oz. jars now instead of 32 oz. Many pasta items in 12 oz boxes instead of 16 oz. coffee 12 oz pound.

22 posted on 01/28/2011 1:42:11 PM PST by Vinnie
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To: FromLori

The Federal Reserve excludes food and fuel prices from its preferred gauge of inflation because they are often influenced by erratic weather patterns and political turmoil
‘’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’

The price of food is going up and the Government is feeding us Bulls***

It is excluded because it would show the truth.


23 posted on 01/28/2011 1:44:10 PM PST by Venturer
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To: Vinnie
The Federal Reserve excludes food and fuel prices from its preferred gauge of inflation

Well, come July, expect to pay more for McChinese crap.

The Tariffs are going to kick in and then its bye bye cheap Chinese manufactured goods.

24 posted on 01/28/2011 1:46:52 PM PST by mylife (Opinions: $1.00 ~ Halfbaked: 50c)
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To: FromLori

yes and so is gas...where is the shortage?


25 posted on 01/28/2011 1:52:58 PM PST by dalebert
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To: Bullish; CJ Wolf; houeto; Quix; B4Ranch; Whenifhow; Silentgypsy; blam; FromLori; Lurker; ...
No-soup-for-you ping.

"Economic Holocaust" ping.

Increasing volume ping list watching the slow motion Economic Holocaust.

FReepmail me if you want on or off
The Comedian's "Economic Holocaust" ping list...


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

26 posted on 01/28/2011 2:02:18 PM PST by The Comedian (Stop voting for The Government Party)
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To: The Comedian

Another 125 pounds of flour into the larder.


27 posted on 01/28/2011 2:14:23 PM PST by Little Bill (Harry Browne is a Poofter.)
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To: FromLori
The Federal Reserve excludes food and fuel prices from its preferred gauge of inflation because they are often influenced by erratic weather patterns and political turmoil

They are also influenced by inflation. Go figure!
28 posted on 01/28/2011 2:22:43 PM PST by CottonBall
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To: familyop

If you live in an apartment in a city,you can’t grow enough to make a difference,if you can grow anything at all besides a windowsill herb garden.

The prices are becoming unreal. Anybody who is having a tough time should learn to coupon and shop the sales and special deals. You can get decent food with coupons,it isn’t all junk,just match the coupons with a sale. I know this goes a little beyond what you posted,but I’m hoping it might help somebody who needs it.


29 posted on 01/28/2011 2:24:42 PM PST by FreeDeerHawk
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To: agere_contra

There ya go ... more proof of Global Warming.


30 posted on 01/28/2011 2:25:16 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: FromLori

This is the Ben Bernank’s version of “Let them eat cake!!!”

Only little people have food inflation!

They do know PRESCIOUSLY what they are doing.


31 posted on 01/28/2011 2:29:21 PM PST by TruthConquers ( Delendae sunt publicae scholae)
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To: FromLori

As a baker, I have seen chocolate double in the last 2 years, and sugar is worse than that. Many many foods have had the sizes change and the price stay the same.


32 posted on 01/28/2011 2:33:48 PM PST by Grammy ( TSA “We handle more packages than UPS.”)
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To: Nachum

That is how we shop too,plus combining coupons with sales and special manufacturer’s promotions. ( like buy x amount,get y amount off at the register or off your next order).

Some of those loss leaders are excellent.


33 posted on 01/28/2011 2:43:42 PM PST by FreeDeerHawk
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To: dalebert

I’m sure world oil prices will continue to trend up as the tumult in the mideast continues.

Baraq’s fault!


34 posted on 01/28/2011 2:47:00 PM PST by nascarnation
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To: FromLori

By the way,as far as I know,people who get “food stamps” can use coupons to lower their grocery bills. I spend less for two adults not on any aid per week than a disabled friend of mine gets
for one adult in food stamps.


35 posted on 01/28/2011 2:49:46 PM PST by FreeDeerHawk
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To: The Comedian

Honestly, why should they care?
They know that they will, strictly speaking, ALWAYS have enough money to provide food for themselves so long as they can produce/print the money.


36 posted on 01/28/2011 2:54:16 PM PST by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: FromLori

Food prices soaring? Let’s subsidize corn farmers to grow corn for fuel.
Overpriced subsidized fuel. And the prices of food grow.
What a bunch of dumb asses.
And let’s subsidize Florida sugar farmers to pollute Florida? So we pay a higher price for sugar the the rest of the world.
What a bunch of dumb asses.
I can go on here. For quite a long time.


37 posted on 01/28/2011 3:23:41 PM PST by Joe Boucher ((FUBO))
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To: nascarnation

does anyone think we are winning the war on terror...


38 posted on 01/28/2011 3:31:20 PM PST by dalebert
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To: FromLori
Hidden Inflation: Food Prices Flying Under the Fed's Radar

That was a deliberate and criminal act by our Soros regime bureaucrats.

To delete two basic necessities, energy and food, from the cost of living calculations is both irrational and calculated. Calculated to deceive, and nothing else.

39 posted on 01/28/2011 6:00:28 PM PST by Publius6961 ("In 1964 the War on Poverty Began --- Poverty won.")
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To: Nachum

It’s how I always shop, I was a single mom for 10 years, then money was still tight after I remarried. So I never lost the habit.

Rummage sale, Salvation Army for most clothes. Under wear (won’t wear used) and shoes are the exception, as I wear such a small size and must have quality shoes because of my feet/leg problems. Have to fit those high $$ custom inserts into my shoes.

Kroger’s has ecoupons that you can use with regular ones. TN Kroger’s doubles value up to 60 cents for manufacture coupons. BOGO for vitamins with coupons is a must.

I have a full freezer, pantry, and pretty much full cleaning, hair, grooming, toothpaste, TP stocked for 3 months at the least for 2.

Bread, dairy, eggs are the only thing you can’t stock to far in advance. But you can stock flour, cornmeal, shortening, baking soda/powder to make simple biscuits or cornbread.


40 posted on 01/28/2011 6:48:44 PM PST by GailA (2012 rally cry DEMOCRATS and RINOS are BAD for the USA!)
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To: NEMDF

Don’t forget to use the drug stores for some items, like canned soup or cereal with coupons, and register rewards.

Grocery bill is up at least 20% IF not more.

Try store brands where possible.

Dishwasher soap now has the phosphate removed, so fill your rinse agent box with white vinegar.

Laundry will need all fabric bleach for light colors.

Get on Coupon Whisper’s ping list.
http://www.freerepublic.com/focus/f-bloggers/2656077/posts


41 posted on 01/28/2011 6:53:22 PM PST by GailA (2012 rally cry DEMOCRATS and RINOS are BAD for the USA!)
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To: dragnet2

Certain peanut butter jars are now 16 oz instead of 18 oz.


42 posted on 01/28/2011 6:54:30 PM PST by GailA (2012 rally cry DEMOCRATS and RINOS are BAD for the USA!)
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To: GailA

Were being ripped off in broad daylight.

It’s becoming the norm.


43 posted on 01/28/2011 6:58:03 PM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: The Comedian
I get so mad at the likes of CNBC and Bloomberg for going along with this charade.

One thing I've been doing is essentially listening to the financial news/commentary/interviews in the middle of the night (although the Mrs isn't real happy about it). It seems to me they tend to be more forthcoming with the information you're looking for than in the light of day.

44 posted on 01/28/2011 7:02:35 PM PST by MichaelCorleone (Sarah Palin is America's Margaret Thatcher)
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To: The Comedian

I often wonder what the late Louis Rukeyser (sp?) would have to say about today’s Fed, bailouts, and the ‘stimulus’. He tried to put the viewer/investor first I always thought.

I miss him. He had a great sense of humor too.


45 posted on 01/28/2011 7:07:12 PM PST by MichaelCorleone (Sarah Palin is America's Margaret Thatcher)
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To: NEMDF; GailA

Safeway has beef soup bones for about 3.60 a package. Those bones were stuff the butcher used to give away for free. Now they’re about 3.99 a pound.


46 posted on 01/28/2011 7:08:49 PM PST by thecodont
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To: FreeDeerHawk
"If you live in an apartment in a city,you can’t grow enough to make a difference,...Anybody who is having a tough time should learn to coupon and shop the sales and special deals...I know this goes a little beyond what you posted,but I’m hoping it might help somebody who needs it."

...beyond and good. It helps. I've done the same while preparing to build greenhouses and fences. If many more people were to grow food in rural and suburban areas, though, that could bring prices down.


47 posted on 01/29/2011 10:37:31 AM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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To: familyop
"Grow your own food, folks"

Bump!

Got a nice big garden, lots of everything, no $2 lettuse or tomatoes for me.

48 posted on 01/29/2011 11:18:50 AM PST by jpsb
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To: familyop

If you have the space; build a raised bed NOW. You can grow an amazing amount of vegetables in a small space...Earth Boxes, pastry buckets, whatever it takes. It’s really not that difficult...grow veggies INSTEAD of flowers.


49 posted on 01/29/2011 11:31:09 AM PST by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: GailA
I stopped by Arby's to get a sandwich yesterday. A roast beef sandwich is now $4. Just the sandwich, not the meal.

FOUR DOLLARS FOR A SANDWICH AT A FAST FOOD RESTAURANT.

50 posted on 01/29/2011 12:23:43 PM PST by IDontLikeToPayTaxes
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