Food Prices Rising at Fastest Rate in 17 Years

[gristy]

Source: New York Post

U.S. food prices rose 4 percent in 2007, compared with an average 2.5 percent annual rise for the last 15 years, according to the U.S. Department of Agriculture. And the agency says 2008 could be worse, with a rise of as much as 4.5 percent.

Higher prices for food and energy are again expected to play a leading role in pushing the government's consumer price index higher for March.

Analysts are forecasting that Wednesday's Department of Labor report will show the Consumer Price Index rose at a 4 percent annual rate in the first three months of the year, up from last year's overall rise of 2.8 percent.

Read more: http://www.nypost.com/seven/04142008/business/food_prices_rising_at_fastest_rate_in_17_106515.htm

---

Though 4% food price inflation in 2007 and projected 4.5% in 2008 is bad enough, my feeling is that the gov't systematically understates inflation, including food prices. How else to keep their Social Security cost of living increases under control? Every time I go to the supermarket nowadays is a shock.

[OKthatsIT]

1. I don't think there will be much social security soon.

The banks permitted the mortgage crisis. They can't play stupid. They aren't.

Congress is frozen in state. Probably terrified to respond. If they bad mouth the banks, who will contribute to their campaigns.

We need to reform campaign finance and get some new people in there that know they work for US, not the corporations.

[bemildred]

2. Look, my house quadrupled in value between 1998 and 2006.

That's 8 years. Gas has quadrupled in a similar time frame. And the government wants me to believe inflation is a couple percent. :rofl::rofl:

[GreenTea]

3. Have gas prices also affected you yet?

We are heading towards $5.00 a gallon before BushCo leaves office (McCain will continue it). Gas was at $1.67 a gallon when BushCo Oil took office in 2001.

In over a hundred years gas, prices hit $1.67 a gallon (never mind how the oil industry for so many years supported the auto industry cranking out low MPG....and helping to defeat so many mass transit initiatives, while building more roads with our tax dollars for even more automobile gas consumption).

We are now forced to buy their gas while they get even more tax breaks and subsidies (corporate welfare) from our tax dollars, still it's NOT enough!

But again, in just seven plus years of BushCo gas is now at $4.00 a gallon (in CA) and rising, heading to be sure to $5.00 a gallon before Bush leaves office...

We'll then have McCain keeping it rolling for the only five oil conglomerates left to continue their collusion & gouging us at the pump.

Now, the greedy republicans want the Iranian oil fields and of course Venezuela', as they will profit even more from our taxes paying for our military for their imperialism and will no doubt gouge us even more.....

Who are the ignorant, gullible, or worse, the indifferent, who think differently?

[shanti]

12. diesel

is almost $5 a gallon here in nor cal. if you want the reason for high food prices, look no further. :(

[DUlover2909]

24. In 1998 I paid 77 cents a gallon at Racetrack in Dallas.

I am one of the only people I know that is glad gas prices are high. Higher prices mean people will conserve. Conservation means less greenhouse C02 and other pollutants. I live close to work (2 miles) and I drive a Honda Civic. The higher gas prices are partially due to a weak dollar. In 2003 gold traded at about $300 per ounce. Now it's over $1000. Gold value remains fairly constant. It's the value of the dollar that's changed. The problem is that wages have not been adjusted to this inflation. Healthcare premiums and food and fuel goes up, wages stay the same. That means people go broke and the economy goes to shit. Thanks Bushco!

[truthisfreedom]

4. 4.5%??? What a crock. Look at the increase in the price of eggs and bread.

It's crazy.

[BelgianMadCow]

8. yessss!!! you are So right. More like forty percent!

wish I could rec your post alone.

We have more honest reporting here, and it was reported last week that since august 07, food has risen 40 %!
And obviously, so has gasoline.

If someone can explain me how this does NOT mean inflation, please.

[bulloney]

27. I've been saying for years that the inflation index is totally bogus, especially with food.

I noticed sharply increasing food prices around 2005. A gallon of 2% milk went from $1.99 to $2.69 in a few short months. Ground beef went from 99 cents to $1.89/lb. Sirloin steaks went from $3.59 to $5.50 a pound and on and on. These days you can't look at a T-bone or porterhouse for less than $10.00/lb. Gas prices began their current ascent beginning in 2005. Remember when we thought $2.00/gallon gas was an outrage? That summer was the first time it went over $2.00 in our area (other than the price gouging from 9/11).

The government tries to tell us that overall inflation has only been running 2-4%. Bullshit. Heatlh care, college tuition, energy and just about everything else has been increasing at double digit annual rate.

[LongTomH]

5. Worst in 17 years?

Let's see...........that means the last time anything like this happened, there was another Republican in the White House!

[Dr.Phool]

7. Another Bush, to be precise.

[bilgewaterbill]

6. I like how inflation is measured AFTER taking out the "volatile" food and energy segments.

I drive 200 miles/day and have to feed 4 teenagers. After I remove food and energy costs - THERE'S NOTHING LEFT!!

[BelgianMadCow]

9. We do the same. Totally pisses me off.

The cost of a Porsche Cayenne however, remains inside our index.

Goes to show ya....

[ryanmuegge]

28. You can blame the Clinton cocksuckers for that shenanigan.

Not the one in the beret, either.

[Systematic Chaos]

10. The 99 Cent Stores are our salvation at this point.

My wife just came back from there and brought home some unbelievable, beautiful produce for a buck a package. I'm talking all four colors of bell peppers in packs of two for a buck each. Two eggplant for a buck. Three huge yellow squash for a buck. Stuff that would cost at least double that in the supermarket. Hell, last time I saw orange bell peppers in the supermarket they were like $1.59 EACH.

And this is the way we're living now. Lots of vegetable soups and stir fries, beans and brown rice, split pea soup, potatoes up the wazoo, roasted vegetables with olive oil and garlic, and on and on. Prepared foods have been out, and will remain so as long as the dollar stores keep stocking these lovely and healthy choices.

[BelgianMadCow]

11. We have Aldi over here

used to be the (upper) middle class wouldn't bother with this kind of supermarket.

Not anymore - their parking is full 5 mins before opening and there are quite some fur-lined SUV-driving housewives present...

I am always on the lookout for their sales. Must nab maintenance equipment when they have it, can't afford repairs anyway...

Besides, their produce is typically equal or slightly less quality for 1/3 to 1/5th of the price.

NO LOGO!

bmc

[indepat]

41. Even at Aldi, the last box of dry milk we bought was $6.99, now $12.99, eggs have more than doubled,

milk up 50%-60%, bread up almost 50%. The inflation numbers put out by our government are monstrously misleading and hence, criminal, but who will take them to court? :mad:

[shanti]

13. yes, BUT

there's a 99 cent store right around my corner with fresh produce too....but have you ever considered that this produce might be GM? also, try getting a dozen eggs for 99 cents. no way, jose, you get 6 for 99 cents now, and millk is 99 cents for a quart, not a half gallon like it was just a year ago.

[Systematic Chaos]

14. I know these might be GM crops, and that does concern me.

I'll take my chances on that, though, given that the alternatives within our budget are going to be high in refined ingredients, preservatives, fat and salt. Given that I am morbidly obese, diabetic, and prone to wicked cellulitis in my legs, I'll stick to the veggies knowing that whether or not they're GM they still have approximately the same beneficial nutrients, phytochemicals and fiber. The balance of our shopping consists of such things as tofu, organic unsweetened soy milk, whole wheat pasta and cereals from Trader Joe's, which for now are still relatively inexpensive.

[heliarc]

18. Good for you....

We must do what we can right? I applaud your diligence. It sounds like yours is a struggle that many Americans go through to truly overcome the crisis of our mass marketed foods. Keep it up. Good to see that Trader Joe's is spreading. Considering it is attempting to bridge a gap between healthy food and the cost of distribution, it is a pretty good deal, but when I first moved to LA, it seemed way too expensive to me. I am grateful that I have a job that allows me to shop there now, and at our local farmer's markets. Sometimes the prices shock me, but I'm lucky that I don't have to worry. I remind myself every day that there are people not so lucky who struggle with these prices every day. I wish you the best of luck and respect your struggle greatly.

[heliarc]

16. And the saddest part...

Is that if you want to support local growers and make sure that varied produce is available without the use of pesticides you have to pay $2.50 for that same orange bell pepper. Most people can't sustain that. And the typical Republican argument would say that "well, that is a luxury and a privilege" but we have gotten so far from a healthy farming model that genetically modified corn is being used to make syrup, and ethanol, while a poor and uninformed America gets obese on over processed convenience food; wouldn't know an orange bell pepper if it hit them ground up in a prepackaged frozen taquito.

And on the other hand we should be encouraging people to know the difference between a russet, and a yukon, or the difference between a beautiful blood orange, or a navel. We should know that a local farm can bring us produce like that, fresh and in season (instead of life extended by chemicals), and instead our local farms are strangled by the volume of competition in flavorless odorless, blanched and bleached poo for food that we get in all of the cut tree packaging in the frozen section. There is a serious reckoning coming for America. We have a lot to learn about how bad things have gotten in our food supply.

And I have noticed the amplification of products and produce offerings at 99c stores, and benefitted at times from it. But I always wonder about the source of these goods. Where are they coming from? Is there a way to find that out?

[Systematic Chaos]

17. The majority are from Mexico I believe.

Many of them say so on the label. Most of it looks great, but not always. If it looks good, my wife gets it. If it's too discolored looking or overripe, it's avoided until the next visit. I'm extremely happy with what we got for $45 this trip. :)

I understand that there actually is a farmer's market here in Vegas, but it's way the hell on the other side of the city from me. I'd love to go there just to say I saw it, but I doubt I'd be able to afford a whole lot.

[heliarc]

19. We are lucky in California to have so many markets...

There is something fundamentally healthy about the community that it represents as well. The notion that local people bring what they themselves have grown and present it for local consumption is a real benefit to my own sense of humanity for sure. The affordability is a real shame, so very often I shop at a local Armenian Market that sells a lot of mexican produce as well, and serves various ethnic groups in the area which means they have a wide variety of difficult to find produce (Cherimoya, Chayote, Nopal, Daikon etc...). The lovely thing about this is that, again one sees a community which understands its own needs and provides for it. I can get out of there with a full cart and 27 dollars or 40 dollars is the bill -- FOR amazing amounts of produce!!! Do you have any Armenian, Korean or Vietnamese communities nearby where you are living? I find that in LA, these communities have an extremely industrious knack for keeping prices LOW and providing exciting variety and services... just a thought. :-)

[shanti]

30. shopping at "ethnic" markets

is actually an excellent idea. we have a large, diverse asian population in sacramento, and my jamaican friends prefer to shop there for the freshest fish and produce. that,trader joe's (my favorite since the late 60's - grew up in so cal), and grocery outlet are where i do the lion's share of my shopping.

[Systematic Chaos]

38. I live very close to Vegas' Chinatown.

Basically, that is the area just west of the center part of the Strip. I'm just east of the Strip so the heart of Chinatown is maybe 1 1/2 miles away. There are scads of Asian markets all around me, and I really want to start checking them out because I'm huge on stuff like curry powder, kimchee (although I have to watch that since it's pickled and high in salt), and that sesame brittle that Thai markets tend to sell. That stuff is an excellent energy snack and it's just sweet enough to taste good without being overly sugary.

We also have lots of humongous Mexican markets, and I've been in a few of those. The workers are almost always bilingual and while the prepared food items may be higher, the produce deals are often excellent.

Right now about an hour on my feet is my limit (although a couple months ago I couldn't handle 5 minutes without wanting to keel over and die), and I am only able to get around using paratransit so I'm limited to their schedule. But I still plan to try and get around to different ethnic stores just to have a look. There is a website called vegweb.com which I was directed to by the experts in the Vegetarian forum, and they have all kinds of killer recipes which use somewhat more exotic ingredients. I really want to give some of those a go. :)

[notesdev]

20. Try $3 for a red bell pepper

Been that way for months here, first time I saw that price my head spun.

Time to put an end to this biofuels foolishness.

[Systematic Chaos]

39. OMG where the hell is this??

Don't know if you'll come back to see my question, but I'd really like to know where you are that you're paying that much for a pepper?

:wtf::spray::wow:

[notesdev]

48. I stopped buying them at that price

but for reference, I'm in the Virginia suburbs of DC. $1.50 is about what I'm willing to pay for a single red pepper, and if they aren't offering them at that price I switch to something cheaper. Green peppers are still reasonably priced right now.

[defendandprotect]

15. We've had these rising gas prices for 7 years + now . . . it was effecting everything all along ---

and now it's massive ---

Quite a distraction from the election and trying to do something about war and holding this
administration accountable ---

Nothing like a big recession to keep the public off balance ---

This administration should be in jail --- !!!

[FatDave]

21. Milk is approaching $4 a gallon in Iowa.

$3.69 for store brand, $3.89 for the good stuff from our local dairy. But we moved to the country last year, and we've already got 3 chickens for eggs. More are coming for meat once I get a coop built. We'll be planting a big-ass garden this year and are considering a calf or two to raise for meat. Taking shit into our own hands. Just wish I could afford a good wind turbine.

[The Doctor.]

22. Ladies and Gentlemen... we have the Harbinger at our doorstep.

The perfect storm is welling to devastation.

[Broadslidin]

23. May we, 'the amurikans' pay dearly for what we have done to the Citizens of Iraq.

:nuke: :patriot: :nuke:

[LBJDemocrat]

26. What?

Iraqis' food prices are going up, too; and they can afford it less than we can.

[LBJDemocrat]

25. Ummm, ethanol, anyone?

The word "ethanol" has only been written once on this page. Wake up, people. Thank you, Iowa.

[berni_mccoy]

29. Wal-Mart. By eliminating competition, and forcing most goods from China and other distant countries

The price to get these goods here is sky-rocketing due to the cost of fuel.

[gristy]

31. Wholesale inflation surges 1.1% in March

WASHINGTON — Inflation at the wholesale level soared in March at nearly triple the rate expected as the costs of energy and food both climbed rapidly.

The Labor Department reported Tuesday that wholesale prices rose 1.1% last month. That was the second biggest increase in the past 33 years. Analysts had been expecting a much more moderate 0.4% rise in wholesale prices.

Core inflation, which excludes energy and food, was more moderate last month, rising just 0.2%, down from a worrisome 0.5% rise in February.

http://www.usatoday.com/money/economy/2008-04-15-ppi-jumps_N.htm

[Marie26]

32. What is the reason for this?

It can't all be due to ethanol, can it?

[eleny]

33. I couldn't get a parking spot at the discount Oroweat bread store yesterday

There were usually no more than 2 cars in front of the store at any time over the years. But yesterday I had to park on the street. Fine with me and they had lots of stock. I go up there about once a month and keep bread in the fridge or freezer.

The savings is enormous, btw, since I can get 3 loaves for less than the price of one fresh loaf. But recently it was as low as 89 cents a loaf for Oroweat Russian Rye. Now it's 3 loaves for over $3.39

[Geek_Girl]

34. I read an article recently that stated

The Feds only look at the core inflation index or something to that effect, that does not include gas and food prices because they are considered to be susceptible to volatile circumstances such as weather that can increase the prices short term. So your correct they do not look at cost of food and gas to gage inflation.

[Hannah Bell]

47. They look at both:

wikipedia:

"The preferred measure by the Federal Reserve of core inflation in the United States is the core Personal consumption expenditures price index. This is based on chained dollars.

Since February 2000, the Federal Reserve Board’s semiannual monetary policy reports to Congress have described the Board’s outlook for inflation in terms of the PCE. Prior to that, the inflation outlook was presented in terms of the CPI.

The older preferred measure of inflation in the United States was the Consumer Price Index. This...is presented monthly in the US by the Bureau of Labor Statistics. This index tends to change more on a month to month basis than does "core inflation"."


From the OP:

"The Labor Department reported Tuesday that wholesale prices rose 1.1% last month. That was the second biggest increase in the past 33 years...

Core inflation, which excludes energy and food, was more moderate last month..."

[cliss]

35. Food prices rose 4 % in 2007.

Food prices are expected to go up 4.5 % in 2008.

That's a complete lie. Just from reading the posts here, you know that food prices have gone up much more than that. The truth is probably more like 30%.

If I used to spend $100.00 for groceries, and now I'm spending $130.00, then that means food inflation has hit 30%. Totally plausible, maybe even more. In some countries, food has gone up 80%, even as high as 100%.

[TriggerGal]

36. 'Tis the season ...

to start growing our own!!

Just remember to purchase HEIRLOOM seeds and plants.
That way, you can save the seeds and plant them next season.

[rcsl1998]

37. K&R

[Purveyor]

40. "mills across the country are using words like 'rationing' and 'shortages' if things continue"...

Scary stuff from within this article:

Wonder Bagels, in Jersey City, N.J., posted a letter from its wheat supplier, A. Oliveri & Sons, saying the recent situation was unprecedented.

"The major mills across the country are using words like 'rationing' and 'shortages' if things continue," it said. "We will sweat out the summer together, hoping there will be some flour left to purchase at any price."

[tom_paine]

42. ROFL! Seventeen years, is it?

WOW, do those Bushies just lie about EVERYTHING!

Undoubtedly it is 27 years, since Raygun, but a Bushie Governemnt could no more say that than a Nazi Governemnt could criticize Hitler.

Bushie Pronouncments are, as much as any totalitarian dictatorship I have ever heard up, lies and fabrications. Half-truths would be generous, but some might prefer that.

I find it interesting the whole thing about govt. underestimating inflation.

(it's a two-fer, save Social Security money PLUS keeps the easantry docile until it become too obvious to tell the same lie anymore)

Wow. If they did some of that back when America was still free, how badly are the Bushievks deceiving us NOW?!?

[2tr4nqued]

43. Is it wrong to kill Republicans

and eat them?

I mean, if everyone does it, no one gets in trouble, right?

[roamer65]

44. By the old, REAL pre-1980 inflation measurement...

we are nearing 12% inflation.

http://www.shadowstats.com/alternate_data

See the fourth chart on the above mentioned web page.

[gristy]

46. Excellent. Thanks for that web site

Here's that graph of inflation. 12% seems about right to me. As I said earlier, every trip to the grocery store is a shock.

[Lithos]

45. Hey Bush finally got his Trifecta

Global Warming and other environmental disasters - check

Piss-poor economy with recession,increasing inflation for food and energy coupled with large scale buyouts of the banks at the expense of the shrinking middle class - check

Endless war - check

Or if you want to say it another way

Rape and pillage of the Earth for profit - check
Corporate welfare - check
Endless fear to keep people from asking questions - check