INFLATION? WHERE?

In yesterday's Fed meeting minutes were the comments:
- "Consumer food prices... continued to run well above the change in core prices." and
- "Core goods prices fell over the year ending in September..."
"Inflation" is defined as higher overall prices caused by a reduction in the value of the currency. What we have now is different. The currency has not cheapened. In fact, with the collapse of a large part of the credit markets, money supply has not been this low for many years.
What we have now is a higher price of oil IN ALL CURRENCIES and higher food prices thanks to our friends in Washington. Can you say, "ethanol"? Corn prices have doubled since the feds started shoveling our hard-earned dollars to wealthy farmers so they would supply ethanol that there is no market demand for. As a result there is less wheat produced, driving up wheat prices. Same for soybeans - you name it. Also meat and dairy products have to go up, because these cattle eat corn feed. This process of price adjustment happens all the way down the food chain until it hits your pocketbook. Yes. You now understand. You pay higher taxes to fund these programs AND you pay higher prices for food as a result. "Thank you, Washington."
Oil and food add up to about 12% of our economy. So the 10% increase in these prices has to come from somewhere. Doing the math, if the money supply is not rising (it's not), the prices of other goods & services (88% of the economy) have to drop by 1.3% to compensate for higher food and energy prices. Look at housing, car sales declining, etc. It is happening.