The Labor Department released its CPI numbers for the month of February this morning. Guess what? Even the statistical gymnastics employed by these masters of illusion could not conceal what has been happening to food prices since the middle of last year. Ask any average US housewife and you would have already known this long before the CPI revealed it but the doubling of grain prices, the surge in wholesale beef and pork costs, rising prices for cotton, etc, were bound to show up sooner or later at the retail level.
As said many times here, a business can only absorb rising wholesale costs for so long. If it wants to remain in business, it must eventually pass these increases on to consumers, especially if it intends to actually increase its hiring.
While some food costs are coming down on the futures markets due to events in Japan and the exodus of a significant amount of speculative demand, it is reasonably sure that as long as the QE comes from the Fed and now more than likely from Japan, inflation in food and energy prices is not going to go away anytime soon.
Consider also the fact that the US Dollar continues to fall on the foreign exchange markets. This is going to have the effect of making imported goods more expensive for American consumers.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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