Inquiring minds are wondering how much food prices are going up after reading SFgate.com’s “Food prices rise sharply…“:
Grocery prices grew by more than 1 1/2 times the overall rate of inflation this year, outpaced only by costs of transportation and medical care, according to numbers released Wednesday by the U.S. Bureau of Labor Statistics.
Economists predict that this is only the beginning. Fueled by the higher costs of wheat, sugar, corn, soybeans and energy, shoppers could see as much as a 4 percent increase at the supermarket checkout next year.
“I noticed just this month that my grocery bill for the same old stuff – cereal, eggs, milk, orange juice, peanut butter, bread – spiked $25,” said Sue Perry, deputy editor of ShopSmart magazine, a nonprofit publication from Consumer Reports. “It was a bit of sticker shock.”
It looks as if this is the start of a long-term change since the price of oil has gone up so much. That would explain the across-the-board increases:
But it makes sense. Since November 2009, meat, poultry, fish and eggs have surged 5.8 percent in price. Dairy and related products have gone up 3.8 percent; fats and oils, 3 percent; and sugar and sweets, 1.2 percent.
While overall inflation nationwide was 1.1 percent, grocery prices went up 1.7 percent nationally and 1.3 percent in the Bay Area, said Todd Johnson, an economist for the Bureau of Labor Statistics office in San Francisco. “The largest effects on grocery prices here over the last month were tomatoes, followed by eggs, fish and seafood.”
The global demand for corn – used for food and ethanol – has swelled so much that feed costs for farmers and ranchers are being passed on to the consumer, Swanson said.
Gas and diesel prices also are playing a role. Wheat costs went through the roof this year when 20 percent of Russia’s crop was destroyed by drought and wildfires, causing the country, the third-largest producer in the world, to ban exports of the grain. The price of sugar, also used for ethanol in parts of the world, is priced at a two-decade high.
We just need to understand that changes must occur in the governing paradigm and that spending must begin in a BIG way to stave off default of US debt.
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