Thursday, December 16, 2010

The USDA Worry Point On Inflation

Mark this down:
The U.S. Department of Agriculture predicts that next year the price of fruits and vegetables, like many other food commodities, could go up. The government agency is forecasting a 2 to 3 percent food inflation rate in 2011 - a pace that is not unusual in a rebounding economy.

"We usually err on the conservative side," said Ephraim Leibtag, a senior economist with the USDA, adding that "2011 holds a bit of uncertainty, so I wouldn't be surprised if it goes higher. If it goes to 6 percent, then we should be worried."
Folks, food prices are going over 6% next year.They are almost there this year. As I have already reported, since November 2009, meat, poultry, fish and eggs have climbed 5.8% in price.

1 comment:

  1. Clearly the CFTC needs to enforce new position limits on broccoli futures. Damned food speculators is the problem.