Wednesday, January 13, 2021

Food Prices Soaring

The latest data from the Bureau of Labor Statistics shows 12-month food prices climbing at a 3.9% annualized rate for 2020.

Overall price inflation for the same period, as measured by the government's Consumer Price Index, rose 1.4%.

Bottom line: The goods people are buying during this lockdown period such as food are soaring.

The advance in food prices was pretty much across the board.

All sub-categories from cereals to fruit showed gains far in excess of the Federal Reserve's "target" inflation of 2.0%. But, hey, if you don't eat, price inflation is not as high.

In the EPJ Daily Alert, I am warning that as the lockdowns ease, price inflation across the board will rise to meet the advance in prices we are seeing in food prices.

Hug your gold coins.



  1. These numbers are surprisingly low. Meat prices felt like they've gone up way more than 4-5%.

    1. Do they still use substitute goods? So if ribeye is up, say, 15%, but chuck roast is up 5%, they'll use chuck roast and just ignore ribeye in the calculation?