The alarm on rising food prices is getting louder.
A “triple-whammy” of higher fertilizer prices, lower international supply and higher gas prices mean higher prices at the grocery store.
Fox Business’s Stu Varney is talking about it, too. And he’s tying it to “stagflation,” which would cause food prices to go even higher.
Here’s the transcript:
“Stagflation is not a happy subject. There are times when the economy gets into an intractable mess — slow growth or no growth with rising prices. That’s stagflation.
We haven’t felt it in a generation, but it looks like it is headed our way again. You are gonna hear a lot about this.
For the past year, inflation has gradually picked up steam. Now it is running hot at a 10% clip — and I think it gets worse.
Food price inflation will soon accelerate. Couple that with gas prices and electricity bills and everything else, and you have got an inflation problem everybody can see and feel.
Now, it’s the job of the Federal Reserve to fix that. They do this by raising interest rates. And that’s what they’re doing now.
The economy will slow. That’s the “stag” part of stagflation. Stagnant economy, rising prices. Stagflation.
Now, think of the implications of this.
The standard of living — especially for low-income people — goes down. Just about everybody loses ground.
Now, we saw stagflation in the 70s and very early 80s — 10% inflation, slowing economy, rate hikes then recession.
An angry electorate fired President Carter.
This time around, we are already feeling stagflation in our wallets.
I think the politicians will feel it at the ballot box – and soon.”
Unfortunately, we may not have enough time to vote out the politicians.
If higher food prices hit this summer, like farmers are predicting, it will be too late.
Some people are preparing for food price increases by stocking up on long-lasting food.
According to one report, Costco has sold out of some of its emergency foods:
Looks like Costco has sold out almost all their emergency food, especially the Mountain house branded items. Everything online goes to an error page. Even the $2200-$6000 pallets are sold out. Cold War 2.0 panic is here. pic.twitter.com/9PK6gH8k0s
— Stalingrad & Poorski (@Stalingrad_Poor) March 14, 2022