Food Inflation Q4 2012

Food inflation as per the USDA seems to be low. However when examining certain specific elements it is extraordinarily high. For example:

Milk has gone from $3.00 to $4.50 a gallon

Coffee from $3.00 to $8.00 a pound

and it continues.

One suspects that energy costs as reflected in gasoline at $5.25 a gallon will get reflected here as well for Q4. I believe that this pressure along with heating costs will hit heavily in Q1 2013.