Food prices increase 3.9% in February, highest jump in 36 years

posted at 11:36 am on March 16, 2011 by Ed Morrissey

If grocery bills seem higher, you’re not imagining things.  Thanks mostly to a sharp increase in fuel prices, the cost of food rose faster in February than in any month since November 1974 — not coincidentally, during a previous energy crisis:

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.

The good news is that the price of oil has declined after the disaster in Japan, going down to $97 a barrel.  However, with Japan’s nuclear reactors under scrutiny and the crisis ongoing at their Fukushima Daiichi plant, Japan will need to boost its other sources of electricity.  Nuclear power accounts for more than a third of it now.   Japan will have to import raw materials for other sources to boost production, and whether that means oil itself or coal, increased transportation demand will eventually mean higher prices even while Japan recovers from the destruction.

Reuters reports that the price increase surprised economists, and it’s not the first time either:

[The overall rise in wholesale prices] was more than double economists’ expectations for a 0.7 percent rise last month. In the 12 months to February, producer prices increased 5.6 percent, the biggest rise since March, after advancing 3.6 percent in January.

The report came a day after the Federal Reserve said it expected the upward inflation pressure from energy and other commodities to prove transitory but that it would keep a close eye on inflation and inflation expectations.

Economists said given the huge amount of slack in the economy, they did not expect the strong producer prices to pass through to consumers any time soon.

My good friend Scott Johnson at Power Line blames the Fed’s QE2 policy in part for the problem, and points to this WSJ editorial yesterday warning of a rise in inflation:

The Federal Reserve has been on a media campaign to sell its monetary policy to average Americans, but this hasn’t always gone smoothly. Witness last week’s visit to Queens, New York, by New York Fed President William Dudley, who got a street-corner education in the cost of living.

The former Goldman Sachs chief economist gave a speech explaining the economy’s progress and the Fed’s successes, but come question time the main thing the crowd wanted to know was why they’re paying so much more for food and gas. Keep in mind the Fed doesn’t think food and gas prices matter to its policy calculations because they aren’t part of “core” inflation.

So Mr. Dudley tried to explain that other prices are falling. “Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful,” he said. “You have to look at the prices of all things.”

Reuters reports that this “prompted guffaws and widespread murmuring from the audience,” with someone quipping, “I can’t eat an iPad.” Another attendee asked, “When was the last time, sir, that you went grocery shopping?”

Scott cleverly titles his post, “Let them eat iPads.”  I’m not sure I’d draw a line between QE2 and what has happened in food and oil prices, at least not as a primary factor.  The effect of QE2 will be to weaken the dollar, which will hike the cost of imports, to be sure, and that may account for a little of the large price jump.  If it was the main factor — if the dollar had been weakened to that extent — then prices would be up across the board, especially on imports.  At least according to today’s report from the BEA on the trade deficit, that doesn’t appear to be the case.

The real source of this problem is America’s continuing refusal to exploit its own energy sources.  We remain too dependent on imports for energy while deliberately sidelining at least hundreds of thousands of potential high-paying jobs by refusing to extract our own oil and natural gas.  When the unstable countries that produce oil go through political paroxysms, it spooks investors and sends commodity prices soaring on the increased risk to distribution.  Those price increases mean higher transportation costs, which impacts all goods and services that require transport to get to consumers.  It’s a multiplier factor that we have seen a number of times over the last four decades, and which our political class continues to pretend doesn’t exist.

Update: Gabriel Malor reminds me that prices of imported goods went up 1.4% in February as well, so the QE2 effect could be a larger part of this than I argued — but not the most pressing cause.

Update II: Yes, it’s definitely worth pointing out that Sarah Palin predicted this in November of last year:

So, imagine my dismay when I read an article by Sudeep Reddy in today’s Wall Street Journal criticizing the fact that I mentioned inflation in my comments about QE2 in a speech this morning before a trade-association. Here’s what I said: “everyone who ever goes out shopping for groceries knows that prices have risen significantly over the past year or so. Pump priming would push them even higher.”

Mr. Reddy takes aim at this. He writes: “Grocery prices haven’t risen all that significantly, in fact.” Really? That’s odd, because just last Thursday, November 4, I read an article in Mr. Reddy’s own Wall Street Journal titled “Food Sellers Grit Teeth, Raise PricesPackagers and Supermarkets Pressured to Pass Along Rising Costs, Even as Consumers Pinch Pennies.”

The article noted that “an inflationary tide is beginning to ripple through America’s supermarkets and restaurants…Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months.”

I wonder what Sudeep Reddy thinks now?


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I went grocery shopping yesterday and did notice higher food prices. Wack.

visions on March 16, 2011 at 11:38 AM

Is part of Michelle Obama weight reduction plan?

Oil Can on March 16, 2011 at 11:39 AM

Whatever. In NYC we are all so rich 3.9% increase in food prices isn’t even noticed. Only people that care are poor people in the red states who are not even humans.
– Ernesto, Grow Fins, crr6

angryed on March 16, 2011 at 11:40 AM

It’s hard to miss at the store. Even Wal-Mart ain’t as cheap as it used to be. Hell, fast food is no longer the bargain it once was. Your average combo meal will run you 7-8 bucks these days.

Doughboy on March 16, 2011 at 11:40 AM

Another attendee asked, “When was the last time, sir, that you went grocery shopping?”

Answer: “I don’t understand the question. Everyone knows the kitchen staff takes care of that. Ask your cook that question”

BobMbx on March 16, 2011 at 11:40 AM

You’re doing a helluva job, Carter II Obama.

Good Lt on March 16, 2011 at 11:41 AM

Wow!!!

I’m sure that this will put a big crimp in the White House budget for Wagyu Beef and Lobster…

PatriotRider on March 16, 2011 at 11:41 AM

Ummmmm…that fear mongering, conspiracy theorist Beck has been on this for MONTHS now.

Helloooooooo?

Flyboy on March 16, 2011 at 11:41 AM

Yeah, but what’s the nutritional info on iPad 2′s?

Michelle might have something to say about them in our diet…

catmman on March 16, 2011 at 11:42 AM

Now would be a great time to increase that percentage of gasohol in our gas to 15%.

OK, after the final 4 picks are in, that is…

MNHawk on March 16, 2011 at 11:42 AM

Keep in mind the Fed doesn’t think food and gas prices matter to its policy calculations because they aren’t part of “core” inflation.

You gotta love how the Fed excludes the two things we literally can’t function without in our lives.

Doughboy on March 16, 2011 at 11:42 AM

Just woke up. I couldn’t sleep last night. Had a lot of bad thoughts running through my head; many of them about the world in its current state.

Anyway, when I finally did fall asleep, I had a dream, and in that dream, Obama was not re-elected. I felt so dang good, and then I woke up.

This President of ours is a joke. He provides no leadership, inspires no confidence, and really doesn’t come across as a concerned individual.

He is the picture of flippancy. Food prices rise, and he is cavalier. Riots around the world ensue, and he is mum for the most part, only offering superficial remarks about freedom and self-determination when required to.

blatantblue on March 16, 2011 at 11:43 AM

I’m sure that this will put a big crimp in the White House budget for Wagyu Beef and Lobster…

PatriotRider on March 16, 2011 at 11:41 AM

Not really since we’re also buying the Presidents groceries…

catmman on March 16, 2011 at 11:43 AM

You were wondering why the hit piece BS poll on Palin came out this morning?

Housing starts crater. Food prices approach Mugabeland.

Any questions?

victor82 on March 16, 2011 at 11:43 AM

Is part of Michelle Obama weight reduction plan?

Oil Can on March 16, 2011 at 11:39 AM

I think not–Veggie prices up about 50% in one month.

itsnotaboutme on March 16, 2011 at 11:43 AM

Oh liberals, you disgust me. You create ‘programs’ to ‘help’ the middle class and the underprivileged, but in doing so, you create more harm than good.

Let’s connect the dots, higher energy prices lead to higher food prices, which leads to people eating more highly process foods which tend to be cheaper then the healthy stuff. Michelle and Mika hardest hit. Great work guys!

Lance Murdock on March 16, 2011 at 11:44 AM

It’s hard to miss at the store. Even Wal-Mart ain’t as cheap as it used to be. Hell, fast food is no longer the bargain it once was. Your average combo meal will run you 7-8 bucks these days.

Doughboy on March 16, 2011 at 11:40 AM

I went to Taco Bell recently. I go there maybe twice a year. I ordered 3 or 4 items. And the total was $9. I thought WTF? I used to go to TB in high school and college and I could order half the menu for $10.

But inflation is 1% a year or so says Ben Bernanke.

angryed on March 16, 2011 at 11:44 AM

But I thought the reason they didn’t give social security recipients a cost of living raise this year or last was because there is no inflation….

theaddora on March 16, 2011 at 11:44 AM

In related news: Memberships in Costco increase dramatically!

Y-not on March 16, 2011 at 11:45 AM

Keep in mind the Fed doesn’t think food and gas prices matter to its policy calculations because they aren’t part of “core” inflation.

Watch me saw my beautiful assistant in half before your very eyes!

darwin-t on March 16, 2011 at 11:45 AM

Palin proven right again?

Abby Adams on March 16, 2011 at 11:40 AM

I was thinking the same thing.

KCB on March 16, 2011 at 11:45 AM

Count it!

rogerb on March 16, 2011 at 11:45 AM

Don’t worry! Soon they’ll up the amount the poor receive in food stamp benefits. Problem solved.

hboulware on March 16, 2011 at 11:45 AM

victor82 on March 16, 2011 at 11:43 AM

Yeah, but the unemployment rate keeps dropping.

Everyone will have jobs but their houses will be gone and they’ll have starved to death before collecting their first paycheck…

catmman on March 16, 2011 at 11:45 AM

Reagan 1980 Are you better off than you were four years ago?
***********************

http://www.youtube.com/watch?v=loBe0WXtts8

canopfor on March 16, 2011 at 11:45 AM

Time to cut out the junk foods…licorice-chips-frozen pizza’s etc….

hawkman on March 16, 2011 at 11:46 AM

I used to go to TB in high school and college and I could order half the menu for $10.

I miss 39 cent tacos!

lorien1973 on March 16, 2011 at 11:47 AM

catmman on March 16, 2011 at 11:43 AM

forgot the /s

PatriotRider on March 16, 2011 at 11:47 AM

Don’t worry! Soon they’ll up the amount the poor receive in food stamp benefits. Problem solved.

hboulware on March 16, 2011 at 11:45 AM

And then brag about it.

Abby Adams on March 16, 2011 at 11:48 AM

But I thought the reason they didn’t give social security recipients a cost of living raise this year or last was because there is no inflation….

theaddora on March 16, 2011 at 11:44 AM

Silly peasant. Food and gas doesn’t count when Ben Bernanke calculates inflation. And since the price of a 100GB memory card is down 10% from last year, there is no inflation and hence no COLA.

angryed on March 16, 2011 at 11:48 AM

I miss 39 cent tacos!

lorien1973 on March 16, 2011 at 11:47 AM

$.19

darwin-t on March 16, 2011 at 11:48 AM

Don’t worry! Soon they’ll up the amount the poor receive in food stamp benefits. Problem solved.

hboulware on March 16, 2011 at 11:45 AM

hboulware:Obama is going to make everything even,he`s going
to take,

from the destitute,and re-distribute it to the p
oor,all in the Fairness Progressive Doctrine!!
(sarc).

canopfor on March 16, 2011 at 11:49 AM

I miss 39 cent tacos!

lorien1973 on March 16, 2011 at 11:47 AM

I miss 25 cent sliders…

PatriotRider on March 16, 2011 at 11:49 AM

Re Japan and coal, far more people will die in the coal mines in China, Indonesia, and Australia that supply Japan with coal, -than will die as a result of the mess in Fukushima.

slickwillie2001 on March 16, 2011 at 11:49 AM

Wow.

Sounds like Glenn Beck.

Wait…….Isn’t he “crazy” and “conspiratorial”?

I mean, he’s been talking about this for around 6 months or so and the NYT said it was “fear-mongering”.

HMMM………………..

Opposite Day on March 16, 2011 at 11:50 AM

Dollar menus are looking pretty lean there days…

PatriotRider on March 16, 2011 at 11:50 AM

Pretty soon we’ll all be dumster diving…

PatriotRider on March 16, 2011 at 11:51 AM

frozen pizza’s etc….

hawkman on March 16, 2011 at 11:46 AM

From my cold dead hands…

catmman on March 16, 2011 at 11:51 AM

No link back to:

http://hotair.com/archives/2010/11/09/palin-do-newspaper-reporters-read-their-own-newspapers/

???

Palin proven right again?

Abby Adams on March 16, 2011 at 11:40 AM

I was thinking the exact same thing when I saw this story.
Too much common sense from this women.

idesign on March 16, 2011 at 11:52 AM

I think not–Veggie prices up about 50% in one month.

itsnotaboutme on March 16, 2011 at 11:43 AM

Some part of this is due to the cold weather kill off of produce supply south of the border. I don’t know how much of the increase would be due to that, and at any rate, those supplies are supposed to reenter the pipeline sometime in the spring as the next harvest is done. I suspect it isn’t a major part of the increase.

a capella on March 16, 2011 at 11:52 AM

I’ll bet Barry, Michelle and the kids will be eating well in Rio this weekend…

PatriotRider on March 16, 2011 at 11:53 AM

retail (+3.9%)
-wholesale (+1.6%)
=================
Diff = “gouging”

MassVictim on March 16, 2011 at 11:53 AM

I think this is all part of a brilliant plan. Rising food prices means tighter budgets. More people on SNAP. Because you can only buy actual food with SNAP, You can curtail what can be purchased. So, Moochelle will get her way sooner. Really I am sort of impressed with the long term planning ;)

hboulware on March 16, 2011 at 11:54 AM

Greatest jump in 36 years? Why, if my calculation is correct — 1975 — that would put back to the, wait for it, … Carter Administration! LOL.

I saw Drudge had one like this on another measurement yesterday which was also a mathematical walk back to 1975.

Jimmy is starting to look better everyday.

Dusty on March 16, 2011 at 11:55 AM

Drill Here! Drill Now!

JellyToast on March 16, 2011 at 11:56 AM

Bursting with meaty taste in exciting shapes your dog will love
Savory beef flavored kibble100% complete and balanced nutrition
Big, meaty taste

Ingredients: Ground Yellow Corn, Beef And Bone Meal, Soybean Meal, Beef Tallow Preserved With Bha, Animal Digest, Salt, Choline Chloride, Zinc Sulfate, Vitamin E Supplement, Ferrous Sulfate, Added Color (Red 40, Yellow 5, Blue 2), Manganese Sulfate, Niacin, Vitamin A Supplement, Calcium Carbonate, Brewers Dried Yeast, Copper Sulfate, Calcium Pantothenate, Natural Flavor, Pyridoxine Hydrochloride, Vitamin B12 Supplement, Thiamine Mononitrate, Vitamin D3 Supplement, Riboflavin Supplement, Calcium Iodate, Menadione Sodium Bisulfite Complex (Source Of Vitamin K Activity), Folic Acid, Biotin, Sodium Selenite.

Nutritional information: Crude Protein 21%, Moisture 12%, Crude Fat 8%, Crude Fiber 5.5%, Linoleic Acid 1%, Calcium 1%, Phosphorus 0.8%.

Caloric Content: 375 kcal/8 oz. Cup.

Limerick on March 16, 2011 at 11:56 AM

The Wasilla Warrior addressed this subject quite nicely back in November:

http://www.facebook.com/note.php?note_id=454151943434

The FB note was preceded by her speech in Phoenix:

http://www.nationalreview.com/corner/252715/palin-bernanke-cease-and-desist-robert-costa

NoNails on March 16, 2011 at 11:56 AM

Some part of this is due to the cold weather kill off of produce supply south of the border. I don’t know how much of the increase would be due to that, and at any rate, those supplies are supposed to reenter the pipeline sometime in the spring as the next harvest is done. I suspect it isn’t a major part of the increase.

a capella on March 16, 2011 at 11:52 AM

Don’t forget we have to save the smelt!

darwin-t on March 16, 2011 at 11:56 AM

Time to cut out the junk foods…licorice-chips-frozen pizza’s etc….

hawkman on March 16, 2011 at 11:46 AM

Man, do I wish I could live on Totino’s.

Doughboy on March 16, 2011 at 11:56 AM

Economists said given the huge amount of slack in the economy, they did not expect the strong producer prices to pass through to consumers any time soon.

Tomorrow’s headline:

Producers unexpectedly pass price increases on to consumers.

John Deaux on March 16, 2011 at 11:56 AM

Greatest jump in 36 years? Why, if my calculation is correct — 1975 — that would put back to the, wait for it, … Carter Administration! LOL.

I saw Drudge had one like this on another measurement yesterday which was also a mathematical walk back to 1975.

Jimmy is starting to look better everyday.

Dusty on March 16, 2011 at 11:55 AM

My almanac says Gerald Ford was president in 1975.
Remember “WIN”?

MassVictim on March 16, 2011 at 11:57 AM

What’s the best way to cook an Ipad2?

mid_aged_man on March 16, 2011 at 11:57 AM

What no Fins today?

Must be out scrounging for coupons to use at the grocery store…

PatriotRider on March 16, 2011 at 11:57 AM

“that would put back to before the, wait for it,”

Fixed.

Dusty on March 16, 2011 at 11:58 AM

Fins got banned

hboulware on March 16, 2011 at 11:59 AM

What no Fins today?

Must be out scrounging for coupons to use at the grocery store…

PatriotRider on March 16, 2011 at 11:57 AM

Fins met the ban hammer a few days ago.

John Deaux on March 16, 2011 at 11:59 AM

What no Fins today?

Must be out scrounging for coupons to use at the grocery store…

PatriotRider on March 16, 2011 at 11:57 AM

Fins is caput. Gone. Has left the building, or should I say, was escorted.

Dusty on March 16, 2011 at 11:59 AM

So much for my planning St. Patrick’s Day feast…just potatoes I guess.

PatriotRider on March 16, 2011 at 12:00 PM

Mr. President, the grocery bill for the wagyu beef and gas for the limo has skyrocketed…

Who’s paying the bill?

The taxpayer is paying the bill, Mr. President.

Doesn’t the taxpayer have to buy groceries and gas for his own household too?

Yes, Mr. President, he does.

He should be thanking me that I’m so frugal then. I use my own golf clubs, I usually eat at home, I use a green golf cart and I’m not George Bush.

ted c on March 16, 2011 at 12:00 PM

This can’t be true. I haven’t seen any of this reported in the news.

faraway on March 16, 2011 at 12:00 PM

Prices are noticeably up. Still, food is pretty cheap in America.

Christien on March 16, 2011 at 12:01 PM

WHY DOES OBAMA HATE POOR PEOPLE?

fossten on March 16, 2011 at 12:01 PM

[MassVictim on March 16, 2011 at 11:57 AM]

Yeah, thanks, I noticed I hadn’t properly written what I meant.

Dusty on March 16, 2011 at 12:02 PM

This can’t be true. I haven’t seen any of this reported in the news.

faraway on March 16, 2011 at 12:00 PM

You’re right. And no problem with gasoline prices either.

MassVictim on March 16, 2011 at 12:02 PM

I’ve been paying 50 cents a pound for bananas forever. yesterday they were 79 cents a pound. Doesn’t seem like much in dollar terms, but it’s a 33% increase in the price. The cheapest store-brand bacon is $6.99 a pound. Orange juice is way up. There were no tomatoes in the store yesterday at any price. Even onions have gotten expensive, I buy them two at a time now and only use a little when I have to in a dish.

I’m just waiting for the last frost to plant my garden this year.

rockmom on March 16, 2011 at 12:02 PM

Fins met the ban hammer a few days ago.

John Deaux on March 16, 2011 at 11:59 AM

Must have been that over the top response to one of my jousts…

PatriotRider on March 16, 2011 at 12:02 PM

Palin proven right again?

Abby Adams on March 16, 2011 at 11:40 AM
====================================
I was thinking the exact same thing when I saw this story.
Too much common sense from this women.

idesign on March 16, 2011 at 11:52 AM

idesign:Heres the WSJ piece!
========================================================
NOVEMBER 12, 2010.
Is Sarah Palin Right About Inflation?
**************************************

Sarah Palin has been the butt of plenty of jokes. But when it comes to inflation, she may be about to look quite prescient.

The “former governor and current housewife from Alaska” got into a back-and-forth this week with the Journal’s Real Time Economics blog on the subject of supermarket prices.

Ms. Palin certainly misspoke when she said inflation has already shown up in the grocery aisles. So far, in general terms, it hasn’t. Real Time Economics’ Sudeep Reddy, who pointed that out, was quite right.

But the more interesting question is about Ms. Palin’s broader point: whether inflation is on its way.

If the commodity markets are right, it sure looks like it.

Consider what’s happening to the prices of the raw materials that go into the most basic everyday products.

Everyone wears cotton clothing, from socks to pants to shirts. And so far, shoppers have been getting a break. Prices for men’s shirts and pants, for example, have actually fallen by 2% in the past year, according to the U.S. Labor Department.

But can that last? In the past few months, cotton prices have rocketed to historic highs. Cotton now costs more than twice as much as it did a year ago.

The price of a loaf of bread hasn’t budged in the last 12 months. Nor has the cost of a box of breakfast cereal. Enjoy it while it lasts. Wheat prices are now surging too. They’ve risen 36% over the past 12 months.

And there are similar patterns across other agricultural and related commodities.

.Coffee has risen more than 60% in the past year. Sugar’s up by more than a half. Corn: 43%. Lumber’s risen by a third. Cattle: 17%. Oats: 37%. Pork bellies are up by a fourth.
(more….)

http://online.wsj.com/article/SB10001424052748704756804575608931467284998.html

canopfor on March 16, 2011 at 12:03 PM

Prices are noticeably up. Still, food is pretty cheap in America.

Christien on March 16, 2011 at 12:01 PM

What’s your point?

theaddora on March 16, 2011 at 12:03 PM

Has NPR reported on this?

faraway on March 16, 2011 at 12:04 PM

Yeah, thanks, I noticed I hadn’t properly written what I meant.

Dusty on March 16, 2011 at 12:02 PM

I think the spirit of what you wrote is true. Gary Trudeau once wrote that the 50′s didn’t end until the assination of JFK, and the 60′s didn’t end until the resignation of Nixon. Ford was just a flash in the pan, so Carter has (appropriately) become the culmination and symbol of all the misery of the 1970′s.

MassVictim on March 16, 2011 at 12:04 PM

Hey, lets take a trip to Brazil.

Electrongod on March 16, 2011 at 12:04 PM

Man, do I wish I could live on Totino’s.

Doughboy on March 16, 2011 at 11:56 AM

+++++

catmman on March 16, 2011 at 12:04 PM

Since Fins and some of the other trolls got banned I will make a sacrifice and attempt to channel them. Mind you, this may be difficult seeing as how I am still tethered to reality but, I’ll give it a shot.

See, this is what happens in heartless capitalist countries. Thousands will go hungry tonight while you all complain about taco bell being expensive. You should all hang your heads in shame

hboulware on March 16, 2011 at 12:04 PM

Some part of this is due to the cold weather kill off of produce supply south of the border. I don’t know how much of the increase would be due to that, and at any rate, those supplies are supposed to reenter the pipeline sometime in the spring as the next harvest is done. I suspect it isn’t a major part of the increase.

a capella on March 16, 2011 at 11:52 AM

So, this too is partially due to the cooling caused by Global Warming, added to the $1100.00 plus it takes to fill a Semi Tractor.

paragon27x on March 16, 2011 at 12:04 PM

Folks, in all honesty, there is a global commodities shortage driving up food prices internationally.

And – seriously – now is the time to stock up on Kikoman soy sauce.

Shy Guy on March 16, 2011 at 12:05 PM

Has NPR reported on this?

faraway on March 16, 2011 at 12:04 PM

+10

PatriotRider on March 16, 2011 at 12:05 PM

This can’t be true. I haven’t seen any of this reported in the news.

faraway on March 16, 2011 at 12:00 PM

You’re right. And no problem with gasoline prices either.

MassVictim on March 16, 2011 at 12:02 PM

These are only newsworthy when the evil Republicans are in the WH. We can’t blame Obama for this he inherited this from Bush.

darwin-t on March 16, 2011 at 12:05 PM

I’ve been paying 50 cents a pound for bananas forever. yesterday they were 79 cents a pound.

rockmom on March 16, 2011 at 12:02 PM

Actually, that’s a 60% increase.

MassVictim on March 16, 2011 at 12:06 PM

“I’ve been paying 50 cents a pound for bananas forever. yesterday they were 79 cents a pound. Doesn’t seem like much in dollar terms, but it’s a 33% increase in the price. ”

I remember when you could get bananas on sale for 25 cents a pound, but now you’re doing good to get them for 50 or 60 cents….Now, I just don’t buy them….Sad but true….

theaddora on March 16, 2011 at 12:06 PM

theaddora on March 16, 2011 at 12:03 PM

Times are hard, but we’ll all survive
We’ve just got to learn to economize.

~RDD

Christien on March 16, 2011 at 12:07 PM

Ah, 1974. Those were the good old days. I remember them well. We had a Rockefeller Repub- RINO for you youngsters- (like the Bushes, McCain, Mitt, Rove, Krauthammer and sooo many more)as Prez. In his Rockefellerian wisdom he instituted wage and price controls to fight inflation after expanding government like LBJ and printing money like Obama. Then when he removed these controls, well boy howdy, inflation really took off. Oooops. WTF? ‘Calling Dr. Keynes, White House courtesy phone please.’

Then after those religion of peace loving Arabs attacked Israel and got their azzes kicked they trumped up an oil shortage as payback for supporting Israel. Voila, even more inflation. Jerry Ford (another Rockefeller) Whipped Inflation Now (WIN) with his buttons and Jimmy Carter was the result. Reminds one of the Bush lead GOP running things until they gave us the Dems and Obama. Anyway, we need another Rockefeller to get us out of this mess! Go Mitt, Go Scott Brown, Go any and all “the era of Reagan” is over Repubs.

JimP on March 16, 2011 at 12:07 PM

Palin proven right again?

Abby Adams on March 16, 2011 at 11:40 AM

Yup. She called it.

rrpjr on March 16, 2011 at 12:07 PM

Just to clarify,the meaning,I googled it!
============================================

RE:

NOVEMBER 12, 2010.
Is Sarah Palin Right About Inflation?

Sarah Palin has been the butt of plenty of jokes. But when it comes to inflation, she may be about to look quite

(prescient.)

**************************************

Definition:

Prescient (Meaning of Prescient)Meaning of Prescient:

Having knowledge of coming events; foreseeing; conscious beforehand.

canopfor on March 16, 2011 at 12:07 PM

Economists said given the huge amount of slack in the economy, they did not expect the strong producer prices to pass through to consumers any time soon.

Oh really…

Kraft Food’s North American president, Tony Vernon, said at a food investor conference Tuesday he anticipates his region’s commodity costs to increase by between $700 million and $800 million in 2011, according to a report….

The executives told investors an increase in costs for milk, meats and other commodities has caused Kraft to raise prices on some of its products, the report said.
http://tinyurl.com/4cqfcdq

Some other companies I read that have or will increase prices…Kellogg, Kroger, Safeway, MacDonald’s, Sara Lee, and lots of others.

Deanna on March 16, 2011 at 12:08 PM

Some part of this is due to the cold weather kill off of produce supply south of the border. I don’t know how much of the increase would be due to that, and at any rate, those supplies are supposed to reenter the pipeline sometime in the spring as the next harvest is done. I suspect it isn’t a major part of the increase.

a capella on March 16, 2011 at 11:52 AM

1. Freeze in southern US and Mexico reduce supply
2. Government engineered mass destruction of orchards and fields in Central Valley of California eliminate domestic sources for many crops
3. High gas prices increase shipping costs
4. Massive oversubsidy of ethanol increases prices for corn, corn-based products, and corn-fed livestock
5. Devaluation of dollar increases prices for imported food

Notice that four out of five of these are the result of government policy. An unusual freeze alone never causes food prices overall to rise.

rockmom on March 16, 2011 at 12:09 PM

What’s the best way to cook an Ipad2?

mid_aged_man on March 16, 2011 at 11:57 AM

Braised with a piquant Apple reduction, served over steamed misery with a side of Titleist dipping sauce over a bed of dried arugula.

catmman on March 16, 2011 at 12:09 PM

I think not–Veggie prices up about 50% in one month.
itsnotaboutme on March 16, 2011 at 11:43 AM

Gee, could this have anything to do with cutting off the water supply in the San Joaquin Valley?

Naturally Curly on March 16, 2011 at 12:10 PM

Since Fins and some of the other trolls got banned I will make a sacrifice and attempt to channel them. Mind you, this may be difficult seeing as how I am still tethered to reality but, I’ll give it a shot.

See, this is what happens in heartless capitalist countries. Thousands will go hungry tonight while you all complain about taco bell being expensive. You should all hang your heads in shame

hboulware on March 16, 2011 at 12:04 PM

Thank you… I “missed” fins…
Seriously, it is “food sticker shock” here on SOCAL… Plus gasoline OVER $4 a gallon… EVERYWHERE…

Khun Joe on March 16, 2011 at 12:10 PM

Times are hard, but we’ll all survive
We’ve just got to learn to economize.

~RDD

Christien on March 16, 2011 at 12:07 PM
I’ve been economizing for years, but when you’re on a fixed income there is just so much you can do….

theaddora on March 16, 2011 at 12:10 PM

In Comparison,heres our prices in Sault Ste.Marie Ontario
Canada,Food Basics,owned by AP Canada!
=========================================

Food Basics Flyer/March 11 – March 17

http://saultstemarie.flyerland.ca/food-basics/234/flyer/47405?mode=single&page=1

canopfor on March 16, 2011 at 12:12 PM

When times get tough
As they sometimes will
And your daily toil
Seems straight uphill
When you feel like you
Just want to quit
Don’t go to Obama
He don’t give a shit

darwin-t on March 16, 2011 at 12:13 PM

theaddora on March 16, 2011 at 12:10 PM

I hear you.

Christien on March 16, 2011 at 12:13 PM

4. Massive oversubsidy of ethanol increases prices for corn, corn-based products, and corn-fed livestock

rockmom on March 16, 2011 at 12:09 PM

This always gets me. Centuries from now, people will rightly ask, “Why were these people burning their food, when there was all this cheap combustible fuel right under their feet?”

MassVictim on March 16, 2011 at 12:14 PM

Big garden this summer!

Ah, didn’t that farm bill give Pinnochios favored corporation the market on seeds?

Anyone know the name of that corporation I will not buy union or OBlahOBlah!

Plant big garden, lure in the deer, eat the deer and the garden.

Is it still legal to eat deer?

dhunter on March 16, 2011 at 12:14 PM

retail (+3.9%)
-wholesale (+1.6%)
=================
Diff = “gouging”

MassVictim on March 16, 2011 at 11:53 AM

Difference = gas prices. Wholesale goods are usually picked up close to source, at the refinery, factory, packing facility. Retail goods have travelled farther. Gas is up 33% since last June alone here in Oregon.

PastorJon on March 16, 2011 at 12:14 PM

My math might be off, but the banana increase is 58%:

(79-50)/50 = .58 or 58%.

BowHuntingTexas on March 16, 2011 at 12:14 PM

When times get tough
As they sometimes will
And your daily toil
Seems straight uphill
When you feel like you
Just want to quit
Don’t go to Obama
He don’t give a shit

darwin-t on March 16, 2011 at 12:13 PM

Inspirational! LOL….

theaddora on March 16, 2011 at 12:15 PM

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