As forecast right here at EPJ, price inflation is going to heat up significantly in the second half. Gas prices are already climbing. Clothing prices are starting to uptick and now the US Department of Agriculture is warning on meat prices.
The USDA now says meat prices will climb 6% to 7% this year over 2010, up from its March 25 forecast for a 4.5% to 5.5% increase.
Beef prices are projected to jump 7% to 8%, up sharply from the government’s March estimate of a 4.5% to 5.5% rise. Beef prices are already running 12% higher than they were a year ago.
Pork prices, which gained more than other meats last year, will be a half-percentage point higher, rising 6.5% to 7.5% over 2010.
Depending on what happens to money supply growth, the price hikes could be even greater than these USDA forecasts.
Robert, you need to end each price alert with the Krugman quote. :) Thanks. Great work!
ReplyDeleteWenzel, how would the trillion plus in reserves get into the economic system when the U.S. is hitting peak debt? Less people and business are not taking out loans.
ReplyDeletenot even close to the price increases we are seeing in the grocery mart.
ReplyDeleteIT DOESN'T TAKE THE GOVERNMENT TO TELL US ABOUT MEAT PRICES. and the prices are higher % than this article portrays,
the government lies. why???
I'll give just one example.
ReplyDeleteWe bought ribs past few years, same type , same store. They were about 1.38/lb for about 2 years. Price was steady. Then late last year they jumped to 1.79 per pound, then to 1.98 per pound, and now they are $2.38 a pound. Same identical cryopac of beef ribs. They were steady for two years, then up like a rocket these past 9 months.
So those %'s in the article are bogus. Lot higher folks.
But but but!
ReplyDeleteKrugman said we'd be knee-deep into deflation by now, remember? These data are lying. Krugman is right. Fake data. Krugman MUST be right, right?