Food Inflation on the Rise

Food inflation is on the rise all over the world.

Meat prices were up 26% last month in China, McDonald's is planning on raising its prices in Japan, and Dean Foods in warned Tuesday that its earnings will be lower due to record milk prices in the U.S.

Food prices are posting gains that are "sizeably exceeding" the gains in price levels overall, said Action Economics Chief Economist Mike Englund on "Morning Call."

"To a certain degree, these price increases seem to be permanent," Englund said.

However, price increases in food and beverage are only on the surface, said CNBC's Steve Liesman, senior economics reporter.

"Not all the price hikes are passed along to the consumer," Liesman said, after looking at consumer prices versus wholesale prices.

He added that the Federal Reserve is unlikely to take any monetary policy due to implementation lag, which will cause any effects to take place six months to a year down the road.

"Milk was lower last year. It's higher this year. Let's not go crazy on milk because it's up right now," he said.