Jim,
It is not just USA that may is seeing food and fuel prices increase, here on the other side of the pond in the UK we are see the same.
Problem here is that out government are trying to persuade us that inflation is low. Due to keep moving the goal posts and accounting methods.
There is now a worldwide crisis over supplies of key crops such as corn, wheat and rice that has triggered food riots in some countries. In the UK it has brought the biggest rises in bills in a generation.
A family which spent £100 a week on food last year now has to find another £19.10 for the same products, equivalent to £993 a year. Once “must-pay” bills for petrol, mortgages, power and council tax are added, the extra cost is more like £2,200.
Yet the official inflation rate is just 2.6 percent. Experts say a worldwide drive to produce biofuels – made from corn, wheat and soya as an alternative to oil – is a major factor.
Many farmers have switched from food production to biofuel crops. The effect of biofuels on food prices has been dramatic. A litre of corn oil has more than doubled in a year, to £1.38, in one of the big supermarkets. Fusilli pasta, made from wheat, is up 81 per cent, a baguette by 41 per cent and Weetabix cereal 21 per cent.
Farmers are also facing huge increases in feed bills, leading to dearer meat and dairy products. Milk is up 16.6 percent, English butter by 62 percent and mild cheddar by 25.6 percent.
Basmati rice is up more than 60 per cent in 12 months and Britain’s biggest supplier, Tilda, has warned of a further rise of around 30 per cent in the coming year.
The soaring price of oil is the second major factor battering consumers. Figures from the AA show the cost of diesel has risen by a quarter in the past year, while unleaded petrol is up 15.4 percent.
The higher price of oil is dragging up the cost of both gas and electricity. How much longer can this go on?
There are more details in this Daily Mail news article. Regards, – Norman in England