Doesn’t it seem like everything in the Obama economy goes in the wrong direction? The number of people on food stamps is up. The number of people with jobs is down. The cost of health insurance is up. The number of people with health insurance is down. Today we find out that home prices are expected to drop, while the cost of food is going to skyrocket.
The USDA predicted last week that food prices will surge in the coming year.
The USDA has released their projections for food price inflation in 2011/2012, showing troubling forecasts that may send you to the grocery store today, before paying higher prices tomorrow. The report shows that the Consumer Price Index (CPI) for all food increased 0.8 percent between 2009 and 2010, and is forecasted to increase 3.5 to 4.5 percent in 2011.
Bruce Krasting notes that the USDA’s projections are especially troubling considering Federal Reserve Chairman Ben Bernanke has said he wants to contain inflation (although excluding food and energy) at less than 2%. Food inflation is running at double his target. Writing in Business Insider, Krasting says the problem is even more serious than the USDA indicates and that global demand is set to push prices even higher as time goes on. (Read More)
According to CNN, housing prices are expected to move in the other direction.
The besieged housing market has even further to fall before home prices really hit rock bottom.
According to Fiserv (FISV), a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices.
Several factors will be working against the housing market in the upcoming months, including an increase in foreclosure activity and sustained high unemployment,explained David Stiff, Fiserv’s chief economist.
Should home values meet Fiserv’s expectations, it would make it the third (and lowest) trough for home prices since the housing bubble burst. (Read More)
Obama and the Democrats will blame the GOP in 3, 2, 1.
Tags: food costs, housing, predictions, triple dip
The Obama administration considers an increase in food stamp recipients as an achievement. They are proud of this economic failure. What a country!
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Food, fuel, household goods, commodities and consumables of all types are going up dramatically.
Plan on buying houses for one dollar each if you buy a whole block of them at a time. They will be cheaper by the dozen if history repeats itself.
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