The high price of food is not an aberration. According to the World Bank crop prices are likely to stay above 2004 levels until 2015.
Reuters writes the "World Bank said food prices are set to remain high in 2008 and 2009, and then decline as supply and demand respond to high prices."
High prices for grains are fueling massive inflation in China and a tripling of the price of wheat has raised the cost of a number of food items in the US and elsewhere. Coupled with rising oil prices, it is hard not to imagine that inflation is on its way back into the economy.
Another problem for the Fed to solve.
Douglas A. McIntyre