According to the latest report from the Bureau of Labor Statistics, inflation is under control. But for those of us who like to eat it’s worth noting that food inflation had the largest increase since September 2011. String together a few months of the reported 0.4 percent increase in the food index and it will hurt at the check-out counter. But in reality any increase in inflation hurts more than it should. That’s because the Fed has left savers defenseless with it’s pathetic zero percent interest rates.
Consumer Price Index Data for February 2014
The food index rose 0.4 percent in February, its largest increase since September 2011. The food at home index increased 0.5 percent as four of the six major grocery store food group indexes increased. The index for meats, poultry, fish, and eggs rose 1.2 percent while the indexes for dairy and related products and other food at home saw more modest increases of 0.7 percent and 0.2 percent, respectively. The index for fruits and vegetables rose 1.1 percent after five consecutive declines, though fresh vegetables declined 0.2 percent. The index for cereals and bakery products was down 0.4 percent, and the index for nonalcoholic beverages declined 0.3 percent. The food index has risen 1.4 percent over the past year, with the food at home index up 0.9 percent and the index for food away from home up 2.2 percent. The index for meats, poultry, fish, and eggs has risen 4.0 percent over the last 12 months, compared to more modest increases for dairy and related products, cereals and bakery products, and other food at home. The index for fruits and vegetables and the index for nonalcoholic beverages both declined over the same period.