Food Inflation... The Next Big Issue?

undoubtedly there is a feel good factor around right now. The stories in the media are less negative, and the stock market is up. But the spectre of inflation, absent so far in the economy, may be emerging.

This press release from the National Inflation Association is very bearish...

"Some of the startling food price increases on a year-over-year basis include, fresh and dry vegetables up 56.1%, fresh fruits and melons up 28.8%, eggs for fresh use up 33.6%, pork up 19.1%, beef and veal up 10.7% and dairy products up 9.7%. On October 30th, 2009, NIA predicted that inflation would appear next in food and agriculture, but we never anticipated that it would spiral so far out of control this quickly."

And "The U.S. government is now paying out more to Americans in benefits than it collects in taxes".

I have no idea whether this data is true, but certainly it points to some big structural issues in the recovery.