Wholesale food prices on the increase
Wholesale food prices are the highest they have been in over three years, thanks to the rapid increase in gasoline prices. Gas prices have gained 13.6 percent, the most it has gained in over three years. This was followed by a .9 percent in food items, especially a large increase in basic foods like milk and eggs. This means food is likely to increase at an even greater amount in the coming months because of the Midwestern drought, causing corn, soy beans, and other basic foods to be in high demand.
However, it appears inflation is increasing at a rate that is slower than anticipated, meaning average consumers will have more money to spend, which helps the economy and interest rates. The Federal Reserve is in a meeting today to discuss possible measures to help stimulate the economy, with the Fed Chairman calling unemployment “a grave concern” and causes “enormous suffering”.