Food prices increase most in 36 years
WASHINGTON - Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame.
The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January's 0.5 percent rise.
Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.
Energy prices rose 3.3 percent last month, led by a 3.7 percent increase in gasoline costs.
Separately, the Commerce Department said home construction plunged to a seasonally adjusted 479,000 homes last month, down 22.5 percent from the previous month. It was lowest level since April 2009, and the second-lowest on records dating back more than a half-century.
The building pace is far below the 1.2 million units a year that economists consider healthy.
There was little sign of inflationary pressures outside of food and energy. Core prices have increased 1.8 percent in the past 12 months.
Still consumers are paying more for the basic necessities.
Gas prices spiked in February and are even higher now. The national average price was $3.56 a gallon Tuesday, up 43 cents, or 13.7 percent, from a month earlier, according to the AAA's Daily Fuel Gauge. Rising demand for oil in fast-growing emerging economies such as China and India has pushed up prices in recent months. Turmoil in Libya, Egypt and other Middle Eastern countries has also sent prices higher.
But economists expect the earthquake in Japan to lower oil prices for the next month or two, which should temper increases in wholesale prices in coming months. Japan is a big oil consumer, and its economy will suffer in the aftermath of the quake. But as the country begins to rebuild later this year, the cost of oil and other raw materials, such as steel and cement, could rise.
Oil prices fell sharply Tuesday as fears about Japan's nuclear crisis intensified. Oil dropped $4.01, or 4 percent, to settle at $97.18 per barrel on the New York Mercantile Exchange.
Food costs, meanwhile, are rising. Bad weather in the past year has damaged crops in Australia, Russia, and South America. Demand for corn for ethanol use has also contributed to the increase.
Prices rose 1 percent for apparel, the most in 21 years. Costs also increased for cars, jewelry, and consumer plastics.
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Except one thing you little liberal mind forgot to think of, the rich also pay the same increase in food prices.....so they aren't collecting anything when we pay more for food.
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And your fuzzy math is a joke. The food prices the rich an easily afford and owning the means to production and holding concentrated pools of capital will MORE than offset their increased expenses on food. You can't be real. That truly is an ignorant observation on your part.
wow, good come back.. Did ytou use your entire brain to come up with that. Really? that's the best you have?
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Actually, I have nothing for you because as I've read your comments your not at ALL to be taken seriously. You are what they call in Texas, as "sh*t stirrer.
The free thinkers resisted this concentrated wealth and power and fought for freedom so that ALL could have opportunity to life, liberty and the pursuit of happiness.
Today, pathetic traitors bow down to the likes of the KOCH monarchy believing that such self serving special interests will reward them for their subservient loyalty but true patriots stand up for their people and THEIR government of the people accessible to all and not just for the privileged.