As US consumer spending increases, more of the household budget is spent on fuel and food. The Federal Reserve raised its estimate of inflation this year to a range of 2.1 percent to 2.8 percent, taking into account a recent surge in oil prices. However, it bumped its core inflation forecasts only marginally to a 1.3 percent to 1.6 percent range. Do those numbers reflect what you're paying?
Although FED Chairman Ben Bernanke tells us that inflation is moderate and transitory, the increase in overall inflation in the past year was the largest in 10 months. "Inflation has picked up in recent months, but longer-term inflation expectations have remained stable and measures of underlying inflation are still subdued," a FED statement said.
Bernanke says the FED will end their $600 billion of bond purchases in June. Still, the central bank said it would continue to reinvest proceeds from maturing securities it holds, ensuring it would remain a big buyer in debt markets and guaranteeing more inflation in the future.
While there is not much I can do to protect myself from higher gasoline prices, there is something I'm doing to keep my food prices down. I've been buying long term storable food from eFoods Global. These foods have a shelf life of up to 25 years so I'm essentially locking in my price for food at today's prices.
I've been consuming a portion of my monthly shipment of food while storing the bulk of it for the future when prices at the grocery store spike upward. I've been recommending to everyone I know they should be preparing for higher prices by putting in a supply of storable food and also keep adding to their precious metals holding. Those that have been buying physical silver in the past few years are already seeing the tremendous increases to their wealth as silver is flirting with it's all-time high price.