Item Dec 08 Oct 12 % Change
Potatoes (Lb) $0.32 $1.30 306%
Butter (Lb) $1.95 $5.19 166%
Coffee (2Lb) $5.49 $13.69 149%
Gasoline (Gal) $1.61 $3.82 137%
Gold (Troy Oz.) $865.00 $1732.75 100%
Flour (5Lb) $1.97 $3.90 98%
Sugar (5Lb) $2.68 $3.79 41%
Inflation (CPI less
Energy and Food) $107.67 $113.97 6%
Shiller 20) $150.58 $142.10 -6%
I could probably make a comment or two about this chart--however I shall just let you ponder it and the word transitory somehow does not figure prominently in my ponders :)
This is a summary from a chart posted on the Counfounded Interest blog.
In a related story, in an effort to lower inflation, potatoes will no longer be included in the CPI index. They will be replaced by something that is falling in price, such as USB drives.
Pure genius--is that you Dr. Ben :)
I LOVE French Fries! YUM!
Sentiment: Strong Buy
Obviously, gold does not fully hedge food price inflation.