Food prices rise sharply - and there's more to come

[Newsjock]

Source: San Francisco Chronicle

For the first time since 2008, inflation is hitting consumers in the stomach.

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.

... Kraft Foods Inc., one of the world's largest food producers, has already announced plans to increase its prices because of mounting ingredient costs and flagging sales. General Mills, maker of everything from flour and baking mixes to cereal and Yoplait yogurt, has said it, too, will raise some of its product prices in January. Experts said consumers can expect the same from Kellogg's and Nestle.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/12/16/MN571GQRDL.DTL

[notesdev]

1. First time since 2008?

By my observations prices have been steadily rising for quite some time now.

[Crystal Clarity]

3. Yeah they definitely have

I noticed a huge jump in food prices back in 06 or 07. Not sure exactly but it was around the time that gas prices had gone above $4 p/gallon. Transportation costs were supposedly the reason then, but they never went back down and in fact continued to go up.

Many items are more then double what they were only 10 or even just 5 years ago. It's getting really bad.

[tridim]

5. I swear that sugar was 99 cents about 5 years ago..

Today it's $3.49 on a good week. That is insane.

[notesdev]

10. I was able to buy milk @ $1.90-ish/gal last year

Last week when I went to buy, it hit $3

and it sure didn't all happen at once

[dixiegrrrrl]

12. 2.00 for 4 # bag, on sale, because of holidays.

gold Medal four was 1.50 a 4-5 # bag, on sale, I bought 4 bags, stuck them and the 4 bags of sugar in the freezer.
Rice is going up, 10 bag is now 5.25, was 4.00 all last summer. got bags of that in freezer too.

thank god for a freezer and a bit of spare cash to stock up on stuff on sale.
and thank god for the dollar store.

Prices are going up a lot, in part, because of the damn commodity speculators!

[notesdev]

34. And guess where the cash for that speculation is coming from?

Coming right from the other side of your wallet, courtesy the federal government, via bailouts to the speculators.

This game is so rigged it's not funny.

[gayisgood]

37. Fertilizer is a petroleum product, and is rising with the price of oil.

That makes the price of food go up. Of course, I'm talking about chemical fertilizer, which most agribusiness uses. Two years ago I paid $10 for 20 lbs of Gaviota 16-16-16. Last week I paid $20.

[fasttense]

54. Use animal manure and compost it's far cheaper and organic. n/t

[Statistical]

55. Fertilizer is not a petroleum product. Pesticides are.

All inorganic fertilizers are produced from natural gas not oil.

[saigon68]

23. Hey Obama we just LOVE you social security COLA freeze

signed:

The Cat Food Crowd

AND THIS BROKEN PROMISE

http://www.nationalreview.com/corner/250098/elderly-wont-be-eating-cat-food-year-veronique-de-rugy

But the politics surrounding this cost-of-living adjustment (COLA) freeze is interesting. The freeze, we are told, will have dramatic consequences for seniors, forcing them to live in the street and eat cat food. To avoid such an outcome, the administration has endorsed sending a $250 bonus check to each of the nearly 58 million Americans on Social Security.

[Creative]

61. Food prices tend to escalate during the winter months for those who consume

fresh foods. But this year it seems to have escalated beyond the norm.

[Red1]

2. Dad

Would freak over the wheat prices...if he was alive.

Wasn't Obama lookin to use price fixes on grains a year ago or so?

[Boudica the Lyoness]

4. I think they are trying to kill us off

[zogofzorkon]

13. And doing quite well at it n/t

[bitchkitty]

20. No, but if we're poor enough, and sick enough

then we won't put up much of a fight. Hell, we don't put up much of a fight anyway - at least not good enough to stop them.

[Le Taz Hot]

6. People might want to start looking at

Square Foot Gardening

http://www.squarefootgardening.com/

and Square Inch Gardening

http://www.chelseagreen.com/content/tips-for-the-square-inch-gardener-vertical-gardening-and-the-three-t%E2%80%99s/

I started to write missives about the Sustainability Movement but the subject is vast I needed to submit them in sections. Unfortunately, the sections were relegated to other little-read specialty forums. After putting a great deal of work into them it didn't make sense that only 3 people on DU were going to see the damned things. Anyway, SFG & SIG are part of that movement and most people can make some use of the information above.

[apnu]

21. Awesome tips! Thanks!

We have a garden in our shared backyard that has issues... both of these ideas might help.

Thanks for the links.

[JDPriestly]

31. You need space and good soil for square foot gardening.

Try that in a big city high rise in an apartment with no balcony. That is how many people live these days.

I love to garden, but in LA, my soil is mostly clay. It lacks nitrogen, and most years, I have to pay a huge water bill just to get a paltry amount of food. It's worth it only because the quality of what I get is so superior to anything in the stores.

But I highly recommend gardening anyway. The spiritual rewards alone are worth it.

And for people living in the midwest or northeast, it is foolish not to plant vegetables.

[arikara]

35. Raised beds

they call it lasagna gardening now. You set up your frame, lay newspaper or cardboard directly over the clay soil. Wet it down, fill the bed with pads of alfalfa or other hay, then straw. Its best if you can do this part in the rainy season so it starts rotting in. Then you only need 3 or 4 inches of good compost soil on top of that. Every year you pile leaves or what have you on top of everything and some manure or compost. Just keep adding everything on top, never any digging. I started one 3 years ago and haven't looked back. Its so easy that I keep making more of them and my garden beds are quickly overtaking the yard.

[JDPriestly]

36. I'm trying that this year and hope to do more starting in January.

I'm composting and have worms in hopes that I can improve my soil. I buy lots of manure and commercial dirt. Just a few inches below the top in my yard, I find solid clay. I think that my soil was cut when our house was built. We are on a hill, and your back yard is quite terraced. Although it is small we have lots of trees including several fruit trees on our lot.

[arikara]

39. We have clay too

but thats the beauty of that type of gardening, it doesn't matter what you have underneath. Longer root veggies like carrots come out a little strange until the soil gets built up, the first year mine were actually bent. But they still tasted amazing and everything grew like crazy.

[AndyTiedye]

45. I Build Our Raised Beds Out of Recycled Decking

Old deck boards may still be in good enough shape to build raised bed planters out of
(once the most rotted sections are cut out, anyway).

[Le Taz Hot]

47. There's not much one can do in a high rise

other than rooftop gardening which I've had no experience with; however, I've lived in apartments most of my life and there's always been some sort of grassy area which could easily be turned into a garden IF you can get the owner's permission.

My square foot gardens are only 4' X 4' which isn't much space at all. I'm fortunate enough to have a little back yard where I've put in three of them. I also grow a lot of things in pots (tomatoes and peppers THRIVE in pots). As for the soil, I tried the Mel's Mix garden mix recommended in the SQG book and it didn't work for me. What did work was Miracle Mix Potting soil plus I have my own compost pile that I add into the mix.

Between the fixed gardens and the stuff in the pots, there is more than enough to supply me, my husband and most of my friends/relatives.

For those who are a little skittish, try an herb garden as a trial. Even if it's just a little fresh oregano, basil and parsley -- or whatever you use on a regular basis.

[SpiralHawk]

49. Give the term 'windowfarms' a google

or 'windowgardens'

You will be surprised at the positive possibilities.

[Le Taz Hot]

56. Corrections.

SQG should be SFG (Square Foot Garden)

Miracle Mix Potting soil should be Miracle Grow Potting Mix.

[JDPriestly]

58. I use a lot of pots. Thanks for the tips.

[xxqqqzme]

33. Found SFG a couple of years ago.

Used it w/ very good results in my backyard garden. That little 10 X 10 produced an abundance of tomatoes, eggplant, green beans, potatoes and peppers. It is truly amazing what you can grow in a small space.

[knitter4democracy]

60. This works. I just wish I hadn't put apple mint in there.

Don't get me wrong--we love the apple mint for tea, etc, but it's trying to take over the world.

This spring, I'm going to have to tear apart our planter and root out the apple mint to start all over. I'm not looking forward to it. I didn't get a garden in last year, but I will this year, by golly.

[Donnachaidh]

7. Just making it easier for the Corporate Country Store

Another massive FAIL by this admin. But why should THEY worry -- the taxpayer's fill their pantries. Even if the taxpayers cannot fill their own pantries.

[prolesunited]

16. Last time I looked, Obama can't mandate

what private companies charge for their products.

[Newsjock]

17. Nixon did

At least for the short term. Not saying that's what is needed now, though.

[Donnachaidh]

18. and looking the other way when the free market goes nuts with speculators

pretty much leaves the public open to attack.

[Possumpoint]

8. For Those Of Us Who Are On Fixed Incomes

It will be a increasing problem. The CPI doesn't reflect increases in food and energy to avoid abrupt swings in inflation. Least that's what the changes to the formula were claimed to be for. My take is that it is a cover up. Without increases in inflation Social Security payments will remain flat.

[loudsue]

9. But selling out to CHINA is supposed to make things CHEAPER!!!!

NAFTA is supposed to make things CHEAPER!!! Bullshit to all of it. Food prices, indeed, tripled during the gas hikes back in 2007 & 2008, and had already been steadily on the rise, if people saved every receipt and compared one year to the next.....which some of us do.

All that bullshit about "inflation is 1%" is absolute hogwash.

[CountAllVotes]

11. that salad bar @ $7.99 lb. is OUT now

No more of that for me. At this price, I'd rather just buy the $3.00 head of lettuce and toss in a few carrot strips and forget it! It "used to be" a deal at $2.99 lb. and that was not that long ago! :grr:

:kick:

[wordpix]

22. grow your own & save even more, with fresher ingredients to boot

[CountAllVotes]

29. if it was possible I would do that

but it is not possible in my case. :(

:dem:

[madrchsod]

14. get used to it....

the weather patterns are changing across the globe.

[rfranklin]

15. THERE IS NO INFLATION!

Ignore those prices at the supermarket and the gas pump!

[jayfish]

19. So basically the relatively minuscule tax breaks for the lower...

and middle classes will go to increased food and energy costs? Sounds familiar...

[bongbong]

24. One food that will be in plentiful supply

Don't fret! In light of the in-your-face corporate takeover & looting of the entire world's economy, one long-forgotten food will soon become plentiful and cheap.

Soylent Green.

[underpants]

25. "wheat, sugar, corn, soybeans and energy" ??? WE SUBSIDIZE ALL OF THOSE

were there cuts in corporate welfare that I am not aware of?

Are they selling less for school lunches?

[jennied]

26. Learning how to clip coupons is a must....

I know some people just simply do not have the time for them. But by saving and sorting coupons, last week I went grocery shopping, the bill was 120 and I brought it down to about 70 dollars. And that was only with a few coupons. I just look at the ads for deals, and then use coupons on those deals. There are also many websites in which you can find people to trade coupons with if you're looking for coupons for a certain thing.

And I know a lot of people frown on the .99 cent only stores. But the one here where I live is incredible. They have fresh brand name bread, fresh veggies and a lot of name brand products. I stay away from strange names and things that don't look right. I really recommend looking at The 99 Cent Chef's site: http://the99centchef.blogspot.com He does use a lot of meat from the 99 cent store, that frankly, I would never touch. But a lot of his meals are healthy and so creative for people that don't have money but want to eat well.

If only they had great coupon deals for meat and vegetables...

[JDPriestly]

27. This hurts the poor, people on SSI and Social Security.

[katnapped]

57. Which I imagine is the point

This country is meant for the rich only and our corporate masters are drilling that point home.

[Kingofalldems]

28. Kick and rec

For the freeper.

[kestrel91316]

30. And they keep telling us there is "deflation"..........

[NickB79]

32. It's to be expected as a number of factors work against global food supplies

The US corn crop fell short of expectations due to warmer-than-normal weather; Russian wheat production fell WAY short due to massive heat waves and fires; Australian wheat production has fallen short for many years now due to a mixture of long-term drought punctuated by torrential rains and plagues of locusts and mice.

As global warming increases, things like this will increase as well.

And as energy demands for oil and natural gas recover, driven primarily by rising demand in China and India, prices for fertilizer and fuel vital for modern agriculture will also rise. With oil production pretty much peaked out and expected to begin declining within the decade, the era of cheap energy is over.

And, as countries like China and India strive to become more like the US in their standards of living, their demand for more energy-intense foods like meat and processed foods will keep going up. This will require more base foods such as grains to be fed to livestock rather than directly to people.

Short of massive social changes in the next decade to use far less energy, relatively cheap food is a thing of the past.

[defendandprotect]

44. Oil industry control and influence over government has long prevented any

massive social change!

In fact, oil industry has so confused the public they probably think Global Warming

has disappeared -- and Climate Change is something new!!


Btw, Frank Luntz -- right wing GOP propagandist -- in 2002 told Obama he should change

Global Warming to "Climate Change" --

[BOG PERSON]

38. now how will i gorge myself to sleep at night

woe is me

[Mulhane]

40. Inflation/deficits=

Inflation = Republican tax hikes.

[KillCapitalism]

41. Gas prices are well on their way to $4.00+ a gallon.

That is going to seriously hurt.

[chill_wind]

42. Yes it is. Serious hurt. n/t

[defendandprotect]

43. We've had constant increases in food prices -- but agree large new hikes ....

currently -

But according to our government, there's no inflation -- !!!

[Trajan]

46. Flag sales ?

Increase prices, and watch them flag more ...

ONE upside - The American people, as a whole, eat way too much .... Cutting back will help some of us get healthier ...

[SpiralHawk]

48. Plant plant plant plant seeds....

Grow grow grow...

[Retrograde]

62. And hope the weather cooperates

that you have enough rain to let things grow to harvest, that the local wildlife leave your garden alone, that it's not too hot for the crops to bolt or too cool for fruit to ripen (my problem this past year), that your soil's good enough to produce food without chemical fertilizers - and that's assuming you have the space for a garden in the first place.

I grow vegetables because I like puttering around outdoors, and it's a way to get unusual varieties. However, my 10X20 plot isn't going to produce everything my household needs, and most people aren't even that lucky. And it's chancy: some years I have enough tomatoes to can for the winter, some years they barely set fruit. Then there was the time I found out raccoons really like cabbage.

[melm00se]

50. anything that relies on

imports in any stage of the processing will see an increase in price.

With a weaker dollar, imports cost more than purely domestic products but those are extremely rare as almost all require fuel for transportation and a good percentage of that is either imported from overseas or is a world market commodity whose price is influenced by other currencies that are gaining strength vs ours.

[whogasa736]

51. I Think in 2011 that famous saying will apply here

"You ain't seen nothing yet" on price increases. I do not see any way it can be avoided.

[KC]

52. That makes me sick

everything goes up but our salary, if lucky enough to have a job!

More meals from the $1 menu...which is sooo healthy...N O T

[Roy Rolling]

53. Get ready for more

increases....until another collapse happens. The CFTC, which regulates commoditis future trading, gave speculators another free ride by refusing to enact regulations that curb excessive specuation. In 2008, oil peeaked at $140 a barrel but collapsed with the rest of the economy and regulators promised rules to prevent that from happening. Yesterday they crawfished on that promise.

[knitter4democracy]

59. Duh. Food prices have been rising for years but were bad at Thanksgiving.

The food cost more than it did last year. Christmas is already more expensive. Items that used to be $4 on sale are $5 on sale this year, etc.