All posts by Laura Shin

Food and energy prices soar

In the desserts aisle of a bustling Manhattan grocery store, South Carolina natives Nancy and Keith Huffaker place a box of assorted cookies in their shopping basket. They’ve come out to satisfy their after-dinner sweet tooth and though they admit the prices are higher in New York, they don’t believe food prices are on the rise.

“I’ve been here for three years and I don’t think it’s too bad,” said Mr. Huffaker. “But you can use more discretion with food, like change brands. Gas prices are a bigger threat.”

U.S. wholesale prices increased for the eighth consecutive month in February, led by a sharp rise in food prices—the highest since 1974. Energy prices also jumped. But some consumers, like the Huffakers, say they have yet to notice a difference on their grocery tab. Economists said producers might feel the pinch as they struggle to pass on the higher costs.

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Jump in Producer Prices Raises Inflation Questions

Wholesale prices increased by 0.8 percent in January, exceeding some forecasters’ predictions. But economists said it’s too soon to sound the alarm on rising inflation, mostly because the overall economic recovery still remains weak.

The increase marks the seventh consecutive rise, following a 0.9 percent advance in December and a 0.7 percent advance in November, the Bureau of Labor Statistics reported on Wednesday. Continue reading Jump in Producer Prices Raises Inflation Questions