Food Inflation Already Hitting Consumers

From Yahoo Finance:

WASHINGTON (AP) — Wholesale prices rose more than expected last month as food prices surged by the most in 26 years. But excluding food and energy, prices were nearly flat.

The Labor Department said the Producer Price Index rose by 0.7 percent in March, compared to analysts’ forecasts of a 0.4 percent rise. A rise in gas prices also helped push up the index.

Still, there was little sign of budding inflation in the report. Excluding volatile food and energy costs, wholesale prices rose by 0.1 percent, matching analysts’ expectations.

Food prices jumped by 2.4 percent in March, the most since January 1984. Vegetable prices soared by more than 49 percent, the most in 15 years. A cold snap wiped out much of Florida’s tomato and other vegetable crops at the beginning of this year.

The author seems to think that because only food is going up inflation is not an issue, which is something only a person with a fridge full of take out can say. These increases are already devastating family budgets, and they’re going to get worse. The combination of a deflating dollar and rising costs for food and fuel means you’re not just treading water anymore, you’re drowning.

Start putting more food in the house now. Anything that stores for a long time should be purchased now because they’re only getting more expensive. It’s time to start that garden and learn to produce some of your own food. Canning, drying and preserving the fresh food you can buy now will save you money in the long run.