Tale of Two Headlines

These two headlines today says it all, I need add nothing:

Bernanke Says Fed Focusing on Jobs, Sees Low Inflation

Bloomberg; By Scott Lanman and Steve Matthews - Nov 10, 2011 12:00 PM ET

“Federal Reserve Chairman Ben S. Bernanke ... projects inflation to stay under control for the “foreseeable future.” …

The Fed chief reinforced points made in his press conference last week, saying today that “inflation appears to be moderating” after “spikes in oil and food prices” helped accelerate price increases earlier this year.

“We expect, based on the best information that we have today, that it will remain reasonably close to our objective of 2 percent or a bit less for the foreseeable future,” Bernanke said. . ..”

Now for the real story on the very same day:

Thanksgiving Meal Cost Jumps 13%

Bloomberg; By Jeff Wilson - Nov 10, 2011 9:00 AM ET

“The cost of a Thanksgiving dinner in the U.S. will jump 13 percent this year, the biggest gain in two decades, as prices rose for everything from turkey to green peas to milk, the American Farm Bureau Federation said.

A meal for 10 people on the holiday, which falls on Nov. 24 this year, will rise to $49.20 from $43.47 last year, the biggest increase since 1990, …based on foods traditionally served including stuffing and pumpkin pie, the farm group said today in a release. Turkey was the most expensive and had the biggest gain, with a 16-pound bird up 22 percent at $21.57.

“Our informal survey is a good barometer of the rising trend in food prices this year,” John Anderson, a senior economist at the Farm Bureau in Washington, said in a telephone interview. “We are starting to see the supply response to higher prices, but there are substantial lags.”. . .

“The era of grocers holding the line on retail-food cost increases is basically over,” Anderson said. “The worst of the price inflation may be ending, and we should see a moderation in 2012.”

At a time when global food prices tracked by the United Nations fell 9.1 percent from a record in February, U.S. consumers are paying record prices, including hams, ground beef, bread, flour and cheese. World food costs are 68 percent higher than five years ago after adverse weather the past three years hampered global production gains.

Rising Costs

Rising gasoline prices, up 28 percent in the past year, are an additional drag on consumer spending, according to Corinne Alexander, an agricultural economist at Purdue University in West Lafayette, Indiana. The biggest reduction in disposable income from rising food prices occurs in the middle class, where consumers buy cheaper generic food brands and lower-quality meat, while eating out less, she said.

“We are still in a period of accelerating food inflation that may begin to moderate in 2012,” Alexander said. “Consumers are getting a double whammy. It costs more to get to work, and they have less disposable income to spend on other things after they go to the grocery store.”

So, if you don't eat or use electricity or gas or drive a vehicle, then the FED says that your money has only depreciated 2.5 % and will only depreciate 2.5% in future periods.  

I ask very simply. "Of what value is this information to anybody?"