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