As I touched on in the first piece in this series, the government numbers don't show inflation as an issue for Americans. You may or may not believe the math in which the government uses to determine inflation in the country. However, I am sure we all agree it sure feels like inflation is already here, as the cost for our everyday purchases continues to rise.
Surging Food Prices
According to the World Bank, their food price index is 29 percent higher today than it was just one year earlier. And even more shocking is that fact that the index is only 3 percent below the peak it hit in June 2008.
The United States Department of Agriculture, or USDA, is projecting an increase between 2.5 to 3.5 percent for all food in the CPI in 2012. Food purchased at the grocery store is expected to increase by 2.5 to 3.5 percent and restaurant food prices jump my 2 to 3 percent. If the numbers end up in line with estimates, they will be near the historical average (1990 to 2011) of a 2.8 percent increase.