The CPI showed that prices for food rose .9% in April, the most in 18 years. Overall, total inflation was more muted and the market was relieved.
In the UK, the picture was not so bright. The Bank of England commented that not only was inflation in the country unusually high, but that food and fuel could push it higher.
According to The New York Times "The central bank governor, Mervyn King, said that inflation, which rose to 3 percent in April, would probably remain that high or rise even further because of higher prices for energy and food."
The comments raise the question of whether the US numbers are being misinterpreted. Is the situation in the UK substantially different than that in America? It is hard to see how the answer could be "yes".
Inflation is worse than the Labor Department figures show. They must be with food and fuel rocketing up every day.
The numbers for May are likely to be much worse.
Douglas A. McIntyre
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