If Fed Chair Janet Yellen wants to find inflation in the U.S. economy, she should just stop at a burger joint.
While traditional indicators show little price pressure, the fabled Bacon Cheeseburger Index, which tracks the cost of the gastronomic delight of the same name, is on an aggressive path higher.
In fact, the price has jumped 7.7 percent over the past year, according to calculations from brokerage Convergex, using government consumer price index data. ( Tweet This )
The biggest contributor to the surging price was a more than 17 percent jump in the cost of ground beef. Costs for bread, cheese and, to a lesser extent, bacon are on the rise as well. White bread posted an annual gain of 3.4 percent, bacon rose 0.2 percent and cheese was up 7.3 percent in February, according to the Bureau of Labor Statistics.
"Yes, we know the Fed can't make more cows or milk or pigs," Nick Colas, chief market strategist at Convergex, wrote in a report that examined several of what he called "off the grid" economic indicators. "But consumer attitudes regarding inflation are anchored in their shopping cart, as anyone who lived through the 1970s will tell you."