[B]ut while the Fed moves on with its bond bonanza assuming rapidly rising prices won't be a problem, or at least not any time soon, it will be hard to convince shoppers at the grocery aisle.
Producer food prices are up 2.6% from a year earlier, compared with an annual gain of just 1.5% for all goods. In particular, chicken prices have surged 14.3% during the last year and wholesale beef and veal prices rose 8.2% in November, the biggest monthly gain since 2008.
For months, the US Department of Agriculture has warned about higher food prices. Next year, U.S. consumers may pay 3% to 4% more for food, the agency forecasts. The price of beef may rise as much as 5% amid tighter supplies of corn, which is used to feed cattle. Since June, the price of grain, the country's biggest crop, rose by more than 50%.
What About Food Inflation Bernanke?
[T]he study showed British families are buying up to 20 percent less fruit and vegetables in order to cut costs since 2007, saying that households are buying less food but paying far more for it.