Want to know what inflation looks like? Just go to your local grocery store

This is only the beginning.  As long as you eat, drive and heat you home, your costs are going up.  The Fed has been saying that there is no inflation in prices.  The CPI has been riding in about 1%.  One of the problems with that scenario is that 40% of the CPI is housing.  So they look at rent prices around the country and use that amount to model the CPI.

Since there has been general downward trend in housing and likewise rents, we have seen little price inflation in the CPI.  But you do see the trends at the grocery store.  Via SFG:

Grocery prices grew by more than 1 1/2 times the overall rate of inflation this year, outpaced only by costs of transportation and medical care, according to numbers released Wednesday by the U.S. Bureau of Labor Statistics.

Economists predict that this is only the beginning. Fueled by the higher costs of wheat, sugar, corn, soybeans and energy, shoppers could see as much as a 4 percent increase at the supermarket checkout next year.

...But it makes sense. Since November 2009, meat, poultry, fish and eggs have surged 5.8 percent in price. Dairy and related products have gone up 3.8 percent; fats and oils, 3 percent; and sugar and sweets, 1.2 percent.

While overall inflation nationwide was 1.1 percent, grocery prices went up 1.7 percent nationally and 1.3 percent in the Bay Area, said Todd Johnson, an economist for the Bureau of Labor Statistics office in San Francisco. "The largest effects on grocery prices here over the last month were tomatoes, followed by eggs, fish and seafood."

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