Cost of food rises faster than cost of gasoline
The Minneapolis Star Tribune ran an alarming story today about the rising cost of food:
In the past year, food prices have increased 3.7 percent and are on track to jump by as much as 7 percent by year's end. The current increase is more than double the 1.8 percent jump seen the year before, according to the consumer price index.Meanwhile, gas prices rose 2.9 percent. Only the cost of health care rose more, and then just slightly.
And the culprit?
While food prices are rising pretty much across the board, items related to corn are affected the most. That's because increasing demand for ethanol, made from corn, is driving up corn prices, which farmers use to feed their poultry and cattle. The high price of corn is also affecting prices of everything from cereal and other products with corn as an ingredient to the oils used to make potato chips. But corn is only one culprit. Higher labor, packaging and fuel costs all play a role. Bad weather in California and Florida was the main contributor to a 20 percent spike in citrus fruit prices as well as higher prices for some vegetables.



Comments
Ken -- I was turned on to you and your group through the teach-in at UC Berkeley which I stumbled on via interest in Michael Pollan. This site is a great resource which I will publicize on my blog through the Food & Farm Bill debate. Look forward to good insights into what is going on in Washington.
Posted by: deliberately | June 5, 2007 6:39 AM