Why Your Food Dollar Doesn’t Stretch As Far: higher oil prices and surging global demand

[JohnWxy]

http://www.ethanolrfa.org/objects/documents/1594/stretching_your_food_dollar_3.19.08.pdf

The Federal Reserve Bank also estimated that “a 10 percent gain in energy prices could contribute 5.2
percent to retail food prices.” 3 According to the Energy Information Administration, the crude oil price as of March 7 was $105.12 a barrel, an increase of more than 45 percent from a year ago. 4 Extrapolated out, the rise in oil prices has contributed more than 20 percent to retail food prices over the past year.

[gristy]

1. Yet somehow our annual inflation rate is at 4%

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ave
2008 4.28% 4.03%
2007 2.08% 2.42% 2.78% 2.57% 2.69% 2.69% 2.36% 1.97% 2.76% 3.54% 4.31% 4.08% 2.85%
2006 3.99% 3.60% 3.36% 3.55% 4.17% 4.32% 4.15% 3.82% 2.06% 1.31% 1.97% 2.54% 3.24%
2005 2.97% 3.01% 3.15% 3.51% 2.80% 2.53% 3.17% 3.64% 4.69% 4.35% 3.46% 3.42% 3.39%
2004 1.93% 1.69% 1.74% 2.29% 3.05% 3.27% 2.99% 2.65% 2.54% 3.19% 3.52% 3.26% 2.68%
2003 2.60% 2.98% 3.02% 2.22% 2.06% 2.11% 2.11% 2.16% 2.32% 2.04% 1.77% 1.88% 2.27%
2002 1.14% 1.14% 1.48% 1.64% 1.18% 1.07% 1.46% 1.80% 1.51% 2.03% 2.20% 2.38% 1.59%
2001 3.73% 3.53% 2.92% 3.27% 3.62% 3.25% 2.72% 2.72% 2.65% 2.13% 1.90% 1.55% 2.83%
2000 2.74% 3.22% 3.76% 3.07% 3.19% 3.73% 3.66% 3.41% 3.45% 3.45% 3.45% 3.39% 3.38%

http://www.inflationdata.com/inflation/Inflation_Rate/CurrentInflation.asp