If you are wondering exactly how much food prices have been rising, let me share with you some U.S. federal date. Compared to last year, wholesale egg prices have risen 60 percent, pasta has risen 30 percent and fresh produce has risen by 20 percent. Unfortunately, this data is a little old. It doesn’t take into consideration recent months when food prices have really been soaring. Overall, prices for food have risen by 5.8 percent above last year. And, they are expected to increase by 7.5 percent every year for the next five years.
Other resources report that baby formula, on average, is up to $38 a case, milk has surpassed the $4 mark in most states, and the average price for a small loaf of bread is between $3.49 and $3.99. A family of three in New Hampshire, who paid $125 per week in groceries last year, reports that they now spend $200 a week for the same groceries.
Cereal portions have become smaller, with boxes of cereal holding less than they used to hold. So, be ware when shopping. You might not think the increase in price is all that dramatic, until you see the reduced amount of cereal that is actually in the box.
The rise in food prices is having a big impact. Families are finding themselves having to make choices to eliminate healthy foods, such as fresh produce and staples from their diets in order to be able to eat. Gas prices, while high also, account for only about 4 percent of a family’s budget. Food, on the other hand, accounts for 13 percent or more of a family’s budget, depending on the family size.
Rising food prices can really hurt consumer confidence, reducing consumer spending in other areas. We are exposed to the rising food prices on a daily basis.
Oh, and here is an amusing little tidbit. Last year, according to http://www.outsidethebeltway.com, Rudy Guiliani was asked by a reporter about the price of staples. He answered “A gallon of milk is probably about a $1.50, a loaf of bread about a $1.25, $1.30.”
Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.
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