Inflation is a pain for everyone. However, the high numbers you’ve been hearing are incomplete. The consumer price index—known as CPI and based on observed price increases on sample baskets of goods—is scary enough when you look at the 12-month 6.4% growth rate. Now recognize that figures don’t include energy or food prices in the mix.
The reason is the desire to understand basic financial forces and predict the future. Energy and food frequently exhibit large amounts of volatility that make predictions exceedingly difficult. So, out they go. When people hear the inflation numbers, food can be higher or lower, and it can change more rapidly. Unfortunately, right now is not a good time for consumers who don’t have the financial resources to weather price jumps because food has been getting more expensive and will continue to do so. The Food and Agriculture Organization of the United Nations noted in February 2022 that its global food index hit an all-time high.
Source: Wall St. Journal