Leading Inflation Indicator: Food

Food for Life distributes food on an internati...

Image via Wikipedia

As in past posts on this blog, inflation numbers seldom are what they seem. Most major economic powers have taken to under reporting on items like food & energy. This keeps the inflation numbers artificially low.

Today, reporter Jeff Cox once again steps into the inflation fray. He showed that major food costs have inflated by almost 13% cumulatively in the last 12 months. The average household is  spending upwards to 12% of their income on food & energy.  These numbers are real inflation that hit everyone, rich and poor. It is one of the reasons when inflation is reported at an anemic 1% to 2% that gold & silver out-perform the rest of the markets.

Gold & silver will continue to reflect true inflation numbers & have the added bonus of increased demand to keep driving the prices forward. Check out the numbers on food inflation here: NetNet: No Inflation? That’s Not What Food Prices Are Saying

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