Advertisement
Canada markets closed
  • S&P/TSX

    22,167.03
    +59.95 (+0.27%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CAD/USD

    0.7389
    +0.0002 (+0.03%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • Bitcoin CAD

    95,684.66
    +1,536.64 (+1.63%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • RUSSELL 2000

    2,124.55
    +10.20 (+0.48%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ futures

    18,465.00
    -38.75 (-0.21%)
     
  • VOLATILITY

    13.01
    +0.23 (+1.80%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,350.20
    +182.13 (+0.45%)
     
  • CAD/EUR

    0.6849
    +0.0006 (+0.09%)
     

Food prices are rising... but inflation's too low? Why the disconnect?

Do you love bacon? How much?

The price of bacon has gone up 13% in the last year and a whopping 53% since January 2010, according to 24/7 Wall St.

Prices of fruit, meats - even coffee - have increased dramatically over the last few years. Drought conditions and disease affecting crops and livestock are reducing supply and driving up the prices of many food staples.

While food prices are rising, the Federal Reserve is concerned that inflation is too low. In a speech last week, Federal Reserve Chair Janet Yellen said, “With inflation running at around 1%, at this point I think the risk is greater that we should be worried about inflation undershooting our goal and getting inflation back up to 2%.”

ADVERTISEMENT

In the corresponding video, Yahoo Finance Editor-in-Chief Aaron Task spoke with Lauren Lyster about rising food prices at the same time the Fed is concerned about inflation being too low.

“The Federal Reserve and Janet Yellen - they think inflation is too low,” Task said. “And yet, you talk to anybody, any average American consumer, our viewers, they’ll say: Wow, I’m not seeing low inflation. I’m seeing higher inflation.”

And consumers are definitely seeing higher prices at the grocery store. 24/7 Wall St. compiled the top-10 fastest-rising food prices from January 2010 to March 2014.

Bacon +53%

Ground Beef +35%

Oranges +35%

Coffee +31%

Peanut Butter +30%

Margarine +30%

Wine +25%

Turkey +24%

Chicken +22%

Grapefruit +22%

And it's not just food prices on the rise, with the cost of tuition and cars also hitting many families hard. “All the stuff that we buy every day seems to be going up in price,” Task said. “So, there’s a huge disconnect there, and I think that’s one reason why there’s a lot of frustration with the official public conversation that’s going on from the Fed that inflation is too low. “

Especially if rising costs are keeping you from your beloved bacon.

What do you think? Are food prices rising too high? Are you concerned about inflation going up? Let us know in the comments section below.