Say Hello to Food InflationSubmitted by RonPaulio on Mon, 10/24/2011 - 12:48
A surprise jump in wholesale food prices in September is bad news for producers and retailers, but you won't feel it in your wallet. Yet.
Producer prices — the amount farmers receive for their goods from manufacturers — rose by 6.9% compared to September 2010 or 0.8% on the month, the U.S. Labor Department said Tuesday. Wholesale prices — those paid by retailers — increased by an annual 2.5%; the biggest rise since June 2009. Worse, higher food prices aren't limited to a particular food group. U.S. wholesale prices rose across the board due to the rise in energy costs and commodities like grain and coffee. Fresh and dry vegetable prices soared by 10% on the year last month; beef and veal prices rose by 5.4%.