Tags: Food | Prices | Cheap | Fuel

Food Prices Seen Rising Despite Cheaper Fuel

Thursday, 13 Oct 2011 07:53 AM

Ben Bernanke critics, rejoice! You were right, the Federal Reserve chairman was wrong on inflation, one economist says.

Despite Bernanke's claims that food and energy price hikes of 2011 were temporary, food prices will continue rising despite falling energy prices, according to Deutsche Bank economist Carl Riccadonna.

"Any benefit from lower energy prices will be absorbed by higher food and core inflation," Riccadonna says in an analysis, according to CNBC.
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"While some policymakers, including (Federal Reserve) Chairman (Ben) Bernanke, remain optimistic that transitory inflation pressures will recede in the coming months, we are less confident that such a development will occur."

bernanke200gettyv3.jpg
Fed Chairman Ben Bernanke
(Getty Images photo)
A weaker dollar, the product of very accommodative Federal Reserve policies, and rising global demand are to blame for higher food prices.
Fuel prices have fallen from recent highs due to seasonal factors and also to reduced demand.

Bernanke has said the Federal Reserve may roll out even more expansive monetary policies if hiring doesn't improve and if core inflation rates — stripped of food and fuel prices — remain low.

Some leaders, Republicans mainly, say they've had enough of such policies.

Newt Gingrich says Occupy Wall Street protestors should target Bernanke and not big banks.

"If they want to really change things, the first person to fire is Bernanke, who is a disastrous chairman of the Federal Reserve," Gingrich says, according to Reuters.

"Bernanke has in secret spent hundreds of billions of dollars bailing out one group and not bailing out another group. I think it is corrupt and it is wrong for one man to have that kind of secret power."

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Ben Bernanke critics, rejoice! You were right, the Federal Reserve chairman was wrong on inflation, one economist says. Despite Bernanke's claims that food and energy price hikes of 2011 were temporary, food prices will continue rising despite falling energy prices,...
Food,Prices,Cheap,Fuel
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