Commodity prices have surged.
There is clearly food inflation that is occurring all over the world. Just this morning, Bloomberg ran a great piece on what is becoming a real problem. From Bloomberg.com:
“World food prices rose to a record in December on higher sugar, grain and oilseed costs, the United Nations said, exceeding levels reached in 2008 that sparked deadly riots from Haiti to Egypt.
An index of 55 food commodities tracked by the Food and Agriculture Organization gained for a sixth month to 214.7 points, above the previous all-time high of 213.5 in June 2008, the Rome-based UN agency said in a monthly report. The gauges for sugar and meat prices advanced to records”
Take a look at the table on page 2 – quite the move for the foodstuffs.