There Is No Price Inflation If You Don't Eat Meats, Poultry, Fish, Eggs, Dairy, Cereals or Bakery Products

The headline Consumer Price Index, released today by the Department of Labor, says that prices declined 0.2 percent in August.

But most of the decline is a result of production gains in the energy sector, pushing gasoline prices and the like lower.

Here's what is going on beneath the surface. It's what you won't see mainstream media report.

Over the last 12 months, the food at home index has risen 2.9 percent, with the index for meats, poultry, fish and eggs up 8.8 percent.

Last month alone, the index for meats, poultry, fish, and eggs rose 1.5 percent. The index for beef and veal rose 4.2 percent. The index  for dairy and related products rose 0.6 percent, and the cereals and bakery products index advanced 0.2 percent.

-RW