Grocery prices increased at more than 50 percent the rate of inflation in 2010, according to data from the U.S. Bureau of Labor Statistics.
Food prices increased an average of 1.7 percent between November 2009 and November 2010, in comparison with a general inflation rate of only 1.1 percent. The greatest price increases were seen among meat, poultry, fish and eggs, which went up in cost by 5.8 percent. The price of sugar and sweets increased 1.2 percent, the price of fats and oils increased 3 percent and the price of dairy-based products increased 3.8 percent.
The only commodities to go up in price more than food were medical care and transportation.
"I noticed just this month that my grocery bill for the same old stuff -- cereal, eggs, milk, orange juice, peanut butter, bread -- spiked $25," said Sue Perry, deputy editor of "ShopSmart" magazine. "It was a bit of sticker shock."
Prices are only likely to keep rising. The Department of Agriculture has forecast a further 3 percent rise in food prices in 2011, but openly admits that the estimate is conservative.
"The USDA always plays it safe," said Wells Fargo agricultural economist Michael Swanson. Swanson predicted price increases of 4 percent, the highest since the 5.5 percent increases that led to riots worldwide in 2008.
Friday, January 28, 2011
Food Prices Skyrocket!
Posted by Nick