Good news, bad news
The Labor Department today reported that wholesale prices rose by 0.3 percent in April, perhaps indicating that the US was not, as previously feared, “veering into a vicious cycle of lower prices and lower wages known as deflation.”
However, the flip side of that “good” news is that food and energy prices are now rising again, despite the lagging economy.
Much of the increase in producer prices in April was the result of a 1.5 percent jump in food prices. Egg prices rose sharply while prices for beef, coffee, vegetables and fresh fruit also increased.
Gasoline prices rose 2.6 percent, reflecting how a plunge in crude oil prices has largely ended after rounds of production cuts by the OPEC cartel and a plateau in demand for oil and gasoline. Crude prices have risen from their recent lows of $33 a barrel to almost $60, and gasoline prices have ticked up to nearly $2.30 a gallon, according to AAA, the automobile club.
Of course, that just means that we all would be wise to continue conserving electricity, gas, heating oil, and other petroleum products as we grow more of our own food and patronize our local farmers. Once again, what is good for our pocketbooks can also be good for the environment.
