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As for inflation and food prices...
Take a look at commodity prices. Since last summer, they have been on a tear. In 6 months, corn and cotton up 75%, wheat, barley, and others up 50-60%. Oh, and of course oil....
This is why people are so concerned about inflation in this area. Rising commodity prices typically mean inflation in food and products made from these commodities several months later. There is also intense price pressure from competition these days, so many companies eat the cost of rising input costs rather than pass them on to the consumer, but this collapses their margins. That can only go on so long before they go out of business or are forced to raise prices.
Mike
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