Reply #44: food prices are rising faster than inflation

[bluedog]

Ethanol use sends food prices up, up, up
The tab for the increasing use of ethanol blends is creating a ripple effect felt in the grocery checkout line.







For the first time since 2004, food prices are rising faster than inflation. And they are forecast to stay up the rest of this year at the fastest pace since 1990. "The difference this year is higher prices for pretty much all foods," said Ephraim Leibtag, who compiles price forecasts for the USDA Economic Research Service.


Many food prices are increasing faster than the rate of inflation

After years of minimal inflation, food prices are rising faster than the Consumer Price Index. So far, CPI inflation is up 2.8 percent in 2007, but food prices rose a whopping 4.9 percent in May. Here are some food price changes through May, compared with a year ago.

Beef - up 5.8 percent

Pork - up 3.9 percent

Poultry - up 5.7 percent

Fish and seafood - up 6.1 percent

Eggs - up 29.6 percent

Milk - up 7.5 percent

Cheese - up 0.8 percent

Ice cream - up 1.4 percent

Butter - up 0.3 percent

All fresh fruit - up 9 percent

Apples - up 13.8 percent

Orange juice - up 25 percent

Tomatoes - up 5.4 percent

Bananas - down 1.7 percent

All fresh vegetables - up 6.4 percent

Potatoes - up 5.3 percent

Lettuce - down 7 percent

Wheat bread - up 6 percent

Cereal - up 4.2 percent

Carbonated drinks - up 4.8 percent

Coffee - up 5.4 percent

Non-carbonated non- frozen drinks - up 3.4 percent

Beer - up 3.8 percent

Wine - (no change)

Sugars - up 2.4 percent



Compensating for higher fuel costs

Higher energy costs prompted 41 percent of grocery shoppers to change their buying behavior in May. Here's how:

Cook more and eat out less - 69 percent

Buy fewer luxury items - 65 percent

Eat more leftovers at other meals - 62 percent

Buy more store brands - 56 percent

Eat meals at less expensive places - 45 percent

Buy fewer foods - 40 percent

Shift from fresh foods to canned, boxed or frozen - 30 percent

Change grocery store - 17 percent



Source: Food Marketing Institute



http://www.sptimes.com/2007/07/15/Business/Ethanol_use_sends_foo.shtml