Food prices taking a big bite out of budgets

[AlphaCentauri]

Source: GateHouse News Service

When you go to the grocery store, is the cost of food eating at you?

Laura Robbins has had her fill of rising food prices. The mother of three remembers the days when milk cost $2.19 a gallon. Now, the 31-year-old is seeing the price approach $5 at the Massillon, Ohio, Wal-Mart. Inflation also has struck other supermarket aisles.

Everything from bread to eggs to cereal is more expensive.

For years, people grumbled about having to pay a lot more to fuel their cars. Now they also pay a lot more to fuel themselves. The price of food around the world has risen significantly in the last year — with price increases driven by the production of ethanol, rising incomes in Third World countries, a hefty increase in the price of gasoline and the slumping value of the U.S. dollar, economists say.

Up, up, up

Food and beverage prices increased 4.5 percent in the year before February, higher than the overall rate of inflation, according to the U.S. Department of Labor's Bureau of Labor Statistics. A year ago, that figure was 3.1 percent.

In the last 12 months, the price of wheat has more than doubled. The cost of corn has jumped more than 23 percent, and the price of one type of soybean has increased more than 56 percent. Cheese, coffee, eggs and sugar also are more costly.

"Anything involving wheat, bread, flour, we're seeing increases coming so quickly that we're just kind of amazed," said Jeff Fisher, president of Fishers Foods, who added that his grocery chain is resisting passing the increases to customers. "At this point, we're not taking a loss, but what we are is ... making less than we typically would."

Wholesale food prices did decrease significantly recently due to a broad market sell-off that could provide some relief. The wholesale prices of some meat have dropped below levels of a year ago, but many prices, especially for grains, remain higher than those for March 2007.

"Consumers have to tighten their belts. There's just no two ways about it," said William Shughart, a professor of economics at the University of Mississippi.


Read more: http://www.uticaod.com/business/x1670185845

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Same problem all over the world:

'A revolution of the hungry'
As world food prices soar, many nations facing disaster
http://www.torontosun.com/News/World/2008/03/25/5093171-sun.html

UN: World Food Program Launches Emergency Appeal For Funds
http://www.rferl.org/featuresarticle/2008/03/BA24228C-8667-4761-90DB-279E3A116A55.html

Prices causing food crisis in Egypt
http://www.upi.com/NewsTrack/Top_News/2008/03/25/prices_causing_food_crisis_in_egypt/3421/

Who is to blame for high rice prices?
http://www.manilatimes.net/national/2008/mar/26/yehey/opinion/20080326opi2.html

Coping With Food Price Increases in Sub-Saharan Africa
http://www.egovmonitor.com/node/17847

Food Prices Scary? You're Not Alone
http://www.cbn.com/cbnnews/344934.aspx

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[panader0]

1. Tell me about it! I have 3 teenaged kids.

[sarcasmo]

4. I couldn't imagine what that Grocery bill must be like. I would have to take on a second job.

Kick and Rec for the high price of inflation.

[RB TexLa]

10. One of the thousands of reasons I'm glad I don't raise children

[KansDem]

2. "Consumers have to tighten their belts. There's just no two ways about it,"

Yeah, today I made half-a-sandwich to take to work. That should stretch my lunch makings to last twice as long.

I figure I can get by with this strategy for awhile.

[micraphone]

3. You ain't kidding

I live in New Zealand and have 4 teenagers. Medium octane gas price here is the equivalent of US$ 5.90 A GALLON.

Eat, drink and be poor: http://www.stuff.co.nz/4436784a7773.html

See what * did?

[Dave_Silvers]

6. Gas Prices Food Prices

We have not built a new refinery in over 30 years we are not allowed to use the resources we have in our country (USA) you guys here on the left make me sick. We have so many different blends of gasoline from state to state it's no wonder gas prices are going though the roof. And this alternative gas is a joke it's going to drive food prices through the roof also and I've also heard that this type of fuel produced from corn pollutes more than conventional gasoline

[Kittycat]

8. "you guys here on the left make me sick"

I think you took a wrong turn on the interwebs. the site you want is free republic.

[TheCentepedeShoes]

7. I would love to visit New Zealand

My dad was there and Australia during WWII.
What are taxes like and what do you get in the way of health care, public transport, education?

[micraphone]

9. We would love to see you

Many of our older folks remember the US visitors very well. Apparently we even had Don "Maxwell Smart" Adams here recuperating for a while in a hospital not far from me.
Actually I am an import too, from England! My army engineer father met lots of Kiwis in the North African desert during WWII - he was so impressed we came here in 1965 (my mother took a while to convince!).

Taxes here are average for developed countries - about 33-38 cents on the dollar income tax. We also pay 12.5% GST (Goods and Services Tax, a bit like UK VAT) on ALL goods and services. Income taxes are graded so the highest earners pay up to 60c/$1 over $100k or so- there are less loopholes here to hide money and our IRD (it's like your IRS) is VERY aggressive and they have more search and seizure powers than our (one) secret service. We have duty (excise) on tobacco, petroleum and alcohol and half the tax on petrol is siphoned off by the centre-left Govt into general funding - very little is spent on the roads!

Having said that we still have Universal health care (with a private option if you want it), paper elections which have worked fine for 160 odd years, tax credits on my children and a 'safety-net' benefit from the Govt if you can't get a job (it's not enough $$$$ to consider staying jobless though). Our sick, disabled and old people are all entitled to Govt $$$ and actual assistance as required.

This not 'Socialism' or 'Commie' - far from it. NZ is a Parliamentary democracy with no less than SIX political parties represented in Parliament! And boy they can argue with each other. Not bad in a country of 4 million people. We guard our freedoms fiercely and strict laws govern campaign funding, equal media air-time etc and protect us against corrupt elections and politicians.

Education is supposed to be 'free' here. This is never the case though as most schools are starved of funds, particularly in poorer areas, so parents end up paying extra for almost everything - books, camps, sports etc and that old favourite "Activity Fees". Universities now charge nominal course fees (so that User Pays) but the Govt have a Student Loan scheme to get you through varsity at peppercorn interest and the loan only becomes payable when you get a job.

Hospitals in the main centres are generally big and well equipped with experienced staff who, thankfully, never have to check your health insurance status while you bleed to death in the hall.

Public Transport is handled by a combination of State owned (or sanctioned) and private companies. All have reasonable charges, given the cost of fuel. The rail system covers the country for freight and passengers and is replicated by road transport systems on long hauls. Bus and train services in larger centres carry more and more people with gas prices so high. We are served by three national air carriers with many more flying from overseas into international airports and smaller private companies offering feeder routes from smaller centres. National carrier Air New Zealand is recognised around the world as you know... the Auckland - LA - London flight is designated NZ1.

Outside the main centres the health and education story is not so good but, with a tax take majorly dependent on a population of only 4 mill, some things do suffer. As has been noted above, we are paying over the odds on all commodities and now people here are calling for more regulation on Corporations and MNCs to control their prices, not less. The corporations seem to make ever higher profits while we struggle to buy food and power - yet they seem to pay less tax than anyone - if at all.

Can't be perfect everywhere, but the last seven years seem to have affected the whole world.

* Edit for clarity

[TheCentepedeShoes]

11. Thanks!

Very informative. Plus you gave us Ngaio Marsh, one of my favorite mystery writers.

[a la izquierda]

5. At first I thought I was just imagining it...

but grocery prices here in Oklahoma have shot up too. Things like pasta have gone from .88 to 1.04. On one item that seems insignificant, but add it up...fortunately for me, it's just my husband and I. We're vegetarians though, and that stuff is expensive to begin with! We just bought a second car and the gas prices are so high too that I've been riding my bike to campus daily. This is completely insane.