Food prices increase most in 36 years

[sabra]

Source: CBS News/AP

Labor Department says Producer Price Index rose 1.6 percent on higher food costs; doubled from previous month

(AP)

WASHINGTON - Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame.

The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January's 0.5 percent rise.

Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.

Energy prices rose 3.3 percent last month, led by a 3.7 percent increase in gasoline costs.

Read more: http://www.cbsnews.com/stories/2011/03/16/business/main20043737.shtml?tag=cbsContent;cbsCarousel

[closeupready]

1. That's okay. I'll just buy bacon-wrapped iPads.

nt

[Fumesucker]

2. Zing..

:rofl:

[apnu]

5. Proving, of course, that everything is better wrapped in bacon. (nt)

[whosinpower]

3. Yeah - and they say

That inflation rates are still low.....huh?

[sharp_stick]

6. Inflation rates

as calculated don't include things like food and fuel.

It's supposed to flatten out the curve by removing the most volatile components.

But when virtually all the inflation is actually taken up by food and fuel as it is now I think it needs to be reported.

[closeupready]

9. The obvious lie here is that you must either include them or exclude them.

Did anyone ever consider that you could include them as part of a running historical average, say food and fuel increases going back to when such items were initially tracked, to the last most recent year, averaging it out and including it with current inflation stats?

So many people in government who tinker with these statistics are so full of shit.

[No Elephants]

17. As one of my former partners muttered, "Figures lie and liars figure."

[pinqy]

15. Did you not read the article?????

The very first thing it says is that the PPI went up mostly because of food. So clearly it is part of the calculations. Fuel is as well.

There are indexes, the core PPI, core CPI, core PCE that exclude food and energy, but those are not the headline numbers, they're always specifiec as "core," and are used for financial markets and interest rates.

[Skink]

4. If wages would keep pace with inflation we'd be fine.

[Psephos]

24. You're nuts.

Just for starters, inflation destroys the spending power of tens of millions of old people on fixed pension incomes, and further ravages whatever savings they have.

Meanwhile, wage increases, if any, lag inflation, and must be actively sought. Many will not receive them, even in the best of circumstances.

Inflation eats away at the capital of trusts and endowments that underwrite many of our best philanthropic and nonprofit institutions, universities, hospitals, symphonies, museums, and on and on.

It creates strong disincentives for people to save money for the future, turning savers into get-it-while-you-can consumers. Saved money is what funds new business, new jobs, and healthy government balance sheets. Less capital = less economic growth.

It creates national malaise, loss of belief in the future, and feelings of helplessness. These are powerful drivers of market psychology, which suppresses the wealth-generating functions of equities and bonds markets.

The last time inflation was rampant (1979), the Prime Rate went to 20%, and mortgages went to 15%, with miserable consequences for business growth and home sales.

http://mortgage-x.com/general/indexes/prime.asp

This is just the beginning of the list....

[Skink]

25. I meant rent control.

and price controls on utilities.

[Charleston Chew]

7. 'you are what you eat' - if you have nothing to eat?

__________
Making Fortune on Poverty: JP Morgan's Big Food Stamp Business

While most Americans are struggling hard to overcome the hardships of the recession, the profits of national banks continue to rise. JP Morgan is among those cashing-in ... and it's a contract to process food stamp payments that's helping it on its way. RT's Maria Portnaya found out how the rich benefit off the back of the poor.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x555040
__________
Food Prices Rise to 'Dangerous Levels'

If the saying is - 'you are what you eat' - what are you if you have nothing to eat? That may be the predicament facing tens of millions of people in developing countries after a 15 percent food price index increase - a rise the World Bank says hits 'dangerous levels'.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x556286
_________

[plumbob]

12. Never forgetting why food stamps are administered by the US Department of Agriculture.

What can you buy with food stamps? Food which needs to be cooked.
Where do you get it? Retail grocery stores.
Where do the stores get that food to sell? Jobbers.
Where do jobbers get it? Wholesalers.
Where do they get it? Processors.
Where do they get it? Farmers.
Who are farmers? ConAgra, ADM and other large corps are the real farmers of today, controlling about 90% of production.

So, 90% of food stamp revenue ends up in large agricultural pockets, more so when you consider these same conglomerates are also the biggest processors and wholesalers.

Why can't you buy diapers with stamps? ConAgra does not want to share their revenue with Pampers.

So poor people do indeed get to eat a limited menu for a limited period of time, while the retained profits go to buy even more land, more factories and other permanent investments for the monied interests. Transient value for the poor = income assets for the wealthy.

That's why this is not a HHS program; it's a huge ag subsidy.

[Charleston Chew]

13. +1, excellent outline!

welcome to DEMOCRATIC underground

[plumbob]

14. Thank you!

We study cash flow of government funds in the economics classes I teach, and it usually is rather startling on many programs where the money ultimately resides.

[shraby]

8. Now watch them give Social Security recipients a raise for

next year and at the same time raise the premiums on Medicare as well as Part D which will still leave seniors biting the bullet.

[CanonRay]

10. Good thing there's no inflation

otherwise they'd have to give Social Security a raise.

[elocs]

11. I went grocery shopping yesterday and I certainly noticed the increase.

A few items I noticed in particular went up over just a few weeks ago. A bag of raisins that was $1.59 is now $1.99, a quart of orange juice was $1.49 and also now is $1.99. A bag of walnuts has gone up near $1 and one thing I would buy is a 10 pound bad of chicken legs and thighs for $5.99 and that went up to $6.99 in just a couple of weeks. So it's tough, especially for people on a fixed income.

[bvar22]

16. Fuck Em.

Grow your own.

[DonCoquixote]

20. okkkk

That might be fine for rural areas, but where the hell are people in the cities going to do that?

[bvar22]

22. Decentralization, Diversification and Localization food production,

is one of the unanimously agreed upon recommendations of most experts looking at our future.

On Edit:
In 2005, my wife & I sold everything, left the Big City, moved to The Woods,
and started producing as much of our own food as possible.
So far, so good.

[DonCoquixote]

26. Decentralization, Diversification and Localization

Care to give any practical data on what that means, is it "death to cities" that the Derrick Jensens want?

[Kennah]

18. Higher food and oil prices are going to make food more local and more organic

Farmer's markets
Backyard gardens and orchards
Empty fields gardened by coops

[RebelOne]

19. Tell me about it. Each week, when I go shopping

I have noticed the prices creeping up. Many items that I usually buy have increased in price by 50 cents to $1. Good thing I am a vegetarian because I could not afford to buy a decent steak.

[zen_bohemian]

21. I went to the store 2 days ago, half of my weekly paycheck went to food

unbelieveable. I will definitely be growing a garden this summer.

[sarcasmo]

23. Food up, wages down, USA, USA.

[underpants]

27. Timing - they are raising prices while they can before people can start gardens