Inflation Hits: Food Prices Going Up.

I have long warned that the Federal Reserve’s policy of monetary inflation would produce rising prices. Wait no longer. It is happening.

Below are the most recent stats on the Consumer Price Index (CPI) from the Federal Reserve Bank of Cleveland.

Tracking the Median CPI is better than the normal CPI. It is less volatile. It shows a clearer picture of prevailing trends. The Median CPI, both month-to-month and over the past 12 months, show a clear trend of increasing prices.

cpi

As CNS News reports:

In January 1980, when the BLS started tracking the price of this commodity, fresh whole chickens cost $0.70 per pound. By this May 2014, fresh whole chickens cost $1.56 per pound.

A decade ago, in May 2004, a pound of fresh chicken cost $1.04. Since then, the price has gone up 50%.

Each month, the BLS employs data collectors to visit thousands of retail stores all over the United States to obtain information on the prices of thousands of items to measure changes for the Consumer Price Index (CPI).

The CPI is simply the average change over time in prices paid by consumers for a market basket of goods and services.

The BLS found that there was a 0.7% change in the prices for the food at home index in May, which tracks foods like meats, poultry, fish, eggs and dairy, as well as many others.

Meat, Poultry, Fish & Egg Price Index Rockets to  All-Time High

This is an election year. People are feeling the pinch. This could become a major election issue.

The Federal Reserve has long trumpeted 2% inflation as a desired inflationary target to supposedly stimulate economic growth. Well, here we are. It is now above 2%, and still going. It could be 3% within a few months. The public has mostly ignored the Federal Reserve for the past few years… but now inflation is going to become a political issue.

In case you wondering what the Federal Reserve has been up to the past few years…. Below is a chart depicting the total supply of money in the US economy, and created by the Federal Reserve. Those printing presses have been running mighty hot.

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