Friday, December 07, 2007

The Real Inflation Rate: Food up 75% in 2 years

Food prices
The end of cheap food
Dec 6th 2007 From The Economist print edition

...Since the spring, wheat prices have doubled and almost every crop under the sun—maize, milk, oilseeds, you name it—is at or near a peak in nominal terms. The Economist's food-price index is higher today than at any time since it was created in 1845 (see chart)...

...Even in real terms, prices have jumped by 75% since 2005.

...Although the cost of food is determined by fundamental patterns of demand and supply, the balance between good and ill also depends in part on governments. If politicians do nothing, or the wrong things, the world faces more misery, especially among the urban poor. If they get policy right, they can help increase the wealth of the poorest nations, aid the rural poor, rescue farming from subsidies and neglect—and minimise the harm to the slum-dwellers and landless labourers. So far, the auguries look gloomy...

See now why the government "conveniently" leaves food out of its "core inflation" statistics? Because including them would show the ugly truth, and they want to cover that up for as long as possible, class.

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