Comodity inflation

[30ashopper]

Commodity inflation

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?"

Review & Outlook: 'I Can't Eat an iPad' - WSJ.com



I haven't noticed an increase in grocery costs, curious if anyone else is seeing it.

 

[30ashopper]

The Labor Department on Wednesday said the producer price index jumped 1.6% last month, following increases of 0.8% in January and 0.9% in December. Producer prices have risen an unadjusted 5.6% over the past 12 months.

..

The central bank on Tuesday opted not to make any changes from its interest rate policy and said any inflation rise caused by surging commodity prices would be ?transitory.?

The wholesale price of food saw the biggest increase last month. The food index surged 3.9%, the largest gain since November 1974. Most of the increase stemmed from higher cost of fresh and dry vegetables.

Wholesale food prices are up 7.3% over the past 12 months. The price of many agricultural staples such as wheat, corn and sugar have surged in the past year or two amid global crop failures and rising demand.

Higher gas prices drove up the wholesale energy index by 3.3% in February, marking the fifth consecutive rise. Energy prices at the producer level have surged 15% in the past year, fueled in part by political unrest in the Mideast.

U.S. wholesale prices up 1.6% in February Economic Report - MarketWatch

I hope Bernanke is right, because if he's not, were on the brink of the next major crisis.

 

[LuciferSam]

U.S. wholesale prices up 1.6% in February Economic Report - MarketWatch

I hope Bernanke is right, because if he's not, were on the brink of the next major crisis.

Life is a series of crises.

 

[sunspotbaby]

Food prices soared 3.9 percent last month, the biggest gain since November 1974. Harsh winter freezes in Florida, Texas and other southern states sent fresh vegetable prices soaring, representing 70 percent of the increase. Tomatoes, green peppers and lettuce all more than doubled in price.

Meat and dairy costs also rose, reflecting higher prices for corn and soybean that are used in animal feed. Economists expect food prices to keep increasing for the rest of this year. Earlier this month, the UN's Food and Agriculture Organization said world food prices have risen to their highest point since 1990, when the agency first began tracking them.

Wholesale Prices Spike on Steep Rise in Food, Oil - ABC News

 

[Miss Kitty]

I read this as something about commodes getting bigger.

 

[DuneAHH]

Yes I've noticed increasing prices... fairly significant in the last 3 months.

*grocery store - almost everything.
*gas
*shipping costs - big time + over 1 year ago.

PS - I wouldn't know about IPads, but gave up my cellphone to help pay the increasing grocery & gas bills.

 

[Beach Runner]

I've noticed that produce, chicken, and whole-grain bread are more expensive.

Thankfully the 1.5 liter bottles of chardonnay haven't increased in price.