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Old 16-01-2012, 14:19   #1
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U.S. Food inflation

Just a note to those who have been outside the U.S. for a while and long for U.S. food prices as you remember them. Food inflation was 15% last year and expected to increase this year. I believe actual increases even higher but government fudges in its recordkeeping. I shop every other week and suffer sticker shock, so those who haven't shopped here for a while are in for nasty surprises.
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Old 16-01-2012, 14:27   #2
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Re: U.S. Food inflation

I asked my local store manager a while back why the increases? He said that fuel charges account for most of it. Funny, the truckers are complaining about not getting any costs increases for the fuel they have to buy. A Victory garden is looking better all the time.
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Old 16-01-2012, 14:31   #3
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Re: U.S. Food inflation

looking on the brighter side inflated food prices may actually have an effect on obeasity rates in the country!
studies of the roman empire found that the slaves had the best teeth
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Old 16-01-2012, 16:59   #4
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Quote:
Originally Posted by atoll
looking on the brighter side inflated food prices may actually have an effect on obeasity rates in the country!
studies of the roman empire found that the slaves had the best teeth
Unfortunately sugar, fats and carbs are the cheaper option than fresh fruits, veggies and meats. And so the obesity cycle continues.
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Old 16-01-2012, 17:15   #5
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Re: U.S. Food inflation

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Originally Posted by Ex-Calif View Post
Unfortunately sugar, fats and carbs are the cheaper option than fresh fruits, veggies and meats. And so the obesity cycle continues.
as tellie says a lot of it is the cost of fuel,so as a result,donut eaters may have to walk to the mall for their sugar fix!

resulting in a vast quality of life improvement for you average couch potato.......
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Old 16-01-2012, 17:23   #6
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Re: U.S. Food inflation

It just shocks me when I carry over $50. in groceries home in my back pack.
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Old 17-01-2012, 04:59   #7
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Re: U.S. Food inflation

Was there any food prices inflation in the previous years? Maybe they're catching up to a 5- or 10-year average?
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Old 17-01-2012, 05:27   #8
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Re: U.S. Food inflation

A few inter-related possibilities, all driven by #1:

1. Developing World Demand
2. Fuel costs
3. Fertilizer Costs
4. Ethanol subsidies (over 50% of U.S. corn crop goes into ethanol)
5. Farmland Prices and Rents (soaring around the world)
6. Equipment costs (ie, global demand for tractors and so forth)

And maybe these, too:
6. Homeland Security scaring away migrant workers?
7. Packaging?
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Old 17-01-2012, 07:56   #9
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Re: U.S. Food inflation

Quote:
Originally Posted by cfarrar View Post
A few inter-related possibilities, all driven by #1:

1. Developing World Demand
2. Fuel costs
3. Fertilizer Costs
4. Ethanol subsidies (over 50% of U.S. corn crop goes into ethanol)
5. Farmland Prices and Rents (soaring around the world)
6. Equipment costs (ie, global demand for tractors and so forth)

And maybe these, too:
6. Homeland Security scaring away migrant workers?
7. Packaging?
And legal fees/settlement funds for the bacterial food-poisoning outbreaks that occur regularly on Monaco -sized "farms" . . .
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Old 17-01-2012, 08:52   #10
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Re: U.S. Food inflation

Because the Canadian and U.S. dollars are currently close to par and have been for some time, I can look at U.S. grocery prices without much distortion. A lot of manufactured goods (appliances, gadgets, some clothing) are still cheaper in an absolute sense in the States, but I think our food is cheaper here, except for some protected sectors like dairy.

As the unemployment rate is higher in the States and the wages are generally lower, I would imagine it is more expensive in an absolute sense to put decent food on the table in the States at the moment.

I do not count man-sized sacks of corn chips for $19.99 from "Sam's Club" as "decent food". America still has the edge in giant portions of corn-based things, even if the company that makes Twinkies has filed for bankruptcy.
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Old 17-01-2012, 09:23   #11
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Re: U.S. Food inflation

You'll notice that the foods that are traded on the commodities exchanges or those that mainly contain ingredients that are traded have the most inflated prices. For instance, boneless skinless chicken breasts are still $1.99 a pound but hamburger has gone from $.89 a pound for the cheap stuff to $2.99 a pound for the cheap stuff in the last 5 years. Beef is speculated on and chicken isn't.
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