In our previous On the Economy blog post, we discussed the importance of current food inflation as a predictor of future inflation more generally. We noted that while food inflation used to be a weak predictor, it has become considerably more useful. By contrast, current energy inflation was and remains a very poor predictor of future inflation. This is not to say that energy (i.e., gasoline) inflation is not important to our lives. Rather, if we are making economic plans, and those plans require a good forecast of future inflation, data suggest that keeping an eye on current food inflation instead could be much more ... (full story)