Food prices taking a big bite out of budgets [View All]

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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