Sticker shock at the supermarket: Food prices poised to rise

If there's any silver lining to a recession -- albeit a thin one -- it's that consumer prices typically go down. Make no mistake, deflation is a sign of a sick economy, but at least the net effect of cheaper prices for the basic necessities -- food, clothing and shelter -- helps folks get by when they are struggling to make ends meet.

But consumers should brace themselves for things to change, especially at the supermarket. As the global and U.S. economies emerge from the downturn, economists predict that there is going to be some sticker shock at the checkout line. Food prices, they say, are heading higher and when you combine that with an unemployment rate that's expected to linger near a three-decade high for at least another year, it's even more unwelcome news.

The U.S. Department of Agriculture expects overall food prices to rise as much as 4 percent in the U.S. by the end of 2010. Yet, some economists think they could climb by as much as 5 percent. Even using the government's more conservative numbers, the price for eggs is forecast to rise 3 percent and beef is seen increasing 2 percent. Lamb, seafood and fish? All three categories are expected to jump as much as 5 percent.

A 5 percent boost in your grocery bill may not seem terribly devastating, but consider this: If you spend $300 a week on groceries now, you'll need to squeeze a raise of about a thousand dollars a year out of your boss (don't forget withholding tax) just to keep up with higher chicken, beef, pork and dairy prices. Good luck accomplishing that little feat with a 9.8 percent unemployment rate and companies looking into every nook and cranny in order to cut costs.

http://www.dailyfinance.com/2009/10/15/why-do-you-pay-so-much-for-these-foods/

"Apart from the fact that food producers will need to raise prices in order to stay in business -- and appease shareholders -- there are global macroeconomic factors at play, too, says Michael Roberts, an economist at North Carolina State University. "Commodity costs are coming up because traders are speculating that the recovery is coming," he says."

It's a goddam racket. Wall street is destroying humanity.

they should be forced to live in cardboard boxes under overpasses for a year with nothing but lint in their pockets.

:thumbsup:

went down. What's their excuse now? Profit?? :eyes:

and want to give you less for it is my guess.

I think they are now at the point where they are just going to drop the fancy explanations and just taking.

I will say that the astronomical rise of 2008 stopped and they did go down a bit here and there. Sometimes even a good bit, but they certainly haven't retreated to their 2007 levels.

What a coincedence, they say this just as the government confirmed there will be no COLA for Social Security because they dont see any inflation.

So our seniors will just have to suck it up and deal with it?

Something going from a dollar to $1.04 doesn't have the same effect as last year when many things went from a dollar to $1.48 or higher.

I know, a few bucks is more than many people have.

interesting.
guess they better stock up on cat food.
sarcasm.

There was a lot of talk during the end of Dec early Jan time period when there was the furor re the congressional pay raise effective Jan 1 '09.

Here is one source, there are many others. As you may recall, Soc Sec recipients got one of the largest COLAs in a very long time, plus another $250 in the spring.


<snip>But don’t count on a boost in payments next year. A Congressional Budget Office report predicts that there will be no cost-of-living increases for Social Security beneficiaries in 2010 through 2012. Although it’s more difficult to make accurate calculations farther into the future, CBO also projects that, after 2012, future cost-of-living adjustments will be less than 2 percent until 2019.

<more at link> http://www.usnews.com/money/blogs/planning-to-retire/2009/04/08/dont-count-on-future-social-security-increases.htmlt

Sad, speculators make money off our food but rarely the people that grow it, except for the massive agribusinesses and I won't even go there, it would be a rant.

Sad, speculators make money off our food but rarely the people that grow it, except for the massive agribusinesses and I won't even go there, it would be a rant.

This is depressing.

Wait until gas goes back to $4 a gallon. Any recovery will be bled by the oil speculators. They want us BEGGING for $4 a gallon when it's $5 a gallon.

They have us by the balls and they know it.

I'm betting that the next group of corporations to fail will be those huge agri-corporations that put the average small farmer out of business. Aren't they playing the buy-out leverage game too? Where they take a loan to buy up a business or farm then dump the loan back on the purchased business. I bet a lot of those Agri-businesses are carrying huge loans.

Start growing your own food. In winter a green house, or hoop house as they call them around here, can keep you in vegetables. Raise some chickens in your back yard. If you can't do that get to know a small farmer.

Print money like mad, feed it to the mortgage-debt hole, guess what happens... the currency drops in value.

Big problem when the economy is dependent on imports, especially oil.

Thank Tim Geithner and Ben Bernanke next time your eyes pop out at the grocery bills.

They always seem to have some sort of scheme to try to fix things that never actually addresses the problem.

if the problem is the threat to the rich & famous lifestyles of their buddies on Wall Street, they addressed it quite well... by beggaring everyone else.

They weren't trying to fix the problem they said they were trying to fix to begin with.

:mad: