The latest data from the Bureau of Labor Statistics shows twelve-month food prices climbing at a 3.9 percent annualized rate for 2020.
Overall price inflation for the same period, as measured by the government’s Consumer Price Index, rose 1.4 percent.
Bottom line: the goods people are buying during this lockdown period such as food are soaring.
The advance in food prices was pretty much across the board.
All subcategories from cereals to fruit showed gains far in excess of the Federal Reserve’s “target” inflation of 2 percent. But, hey, if you don’t eat, price inflation is not as high.
In the EPJ Daily Alert, I am warning that as the lockdowns ease, price inflation across the board will rise to meet the advance in prices we are seeing in food prices.
Hug your gold coins.
Reprinted from EconomicPolicyJournal.com.
