The USDA is predicting a 3.5 percent increase in food prices in 2011, which is about twice the overall inflation rate but less than the 2008 increase, according to a recent Reuters report. In 2008, food pricesrose 5.5 percent, which represents the highest increase since 1990. But the possibility of foodpricesdramatically rising in2011like they did in 2008 is a definite possibility.
"Given that it's still earlier in the year, I'm prone to be conservative on the side of the forecast," said Leibtag. "It's a possibility," he added, concerning the likelihood of massive inflation in food costslike was seen in 2008.
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In 2008,
ReplyDeletethe increased costs of foodstuffs was absorbed to an extent by manufacturers wholesalers and retailers in the rich world desperate to preserve market share by reducing profit margins .
All disguised somewhat by smaller packaging , laying off workers and improving productivity by squeezing the remaining workers and other competing smaller manufacturing and retail companies .
Some more food production was sent 'off shore" by free trade to the cheap labor third world.
I Hope you like your Mexican chicken and pork?
Government was able to claim inflation was therefor low.
That will not be possible now that old boom time “fat” is alredy gone , the ability to reduce margins for many manufacturers further and maintain profits no longer exists, so the full complete costs of raw materials
will be passed on to the consumers with price rises and inflation in foodstuffs will soar .
Expect more manufacturing to be sent off shore As america loses more food decurity.
No problem .
Even if you cannot afford takeaway food in the future ,Americans can learn fron the Third World peoples ,Noodles may not have much nutritional value for children ,but they are cheap and easy to prepare.
The Tens of millions already on Food stamps will find it can all go a long way by buying noodles.
The recent big FEMA order is beleived to include lots of ready to eat noodle packs!
"Chicken" Chow Mein , or "Chili beef" flavored noodles are at lest good "tasty" food ,very suitable for a future Third world country ,like the now insovent America.
was thinking the same..3.5%, no it'll be higher because the shrinking portion and ounce sizes and injecting of water has already been done, yes they'll now pass fully onward the input cost rises.
ReplyDeleteMuch Higher, Just wait til later this year, after July, when the fireworks really start.
ReplyDeleteThe progressives control the media. You may have noticed that they lie, a lot. Their goal is to make you THINK that inflation is low by talking about what would happen IF it went high. News flash - inflation is already well above 10% and shooting higher by the day for things that people need. Products have been shrinking (silently) while prices have remained same or gone higher, and then theres the food and energy that are not included in their reported numbers, so the real inflation is much much higher than reported. Whenever you see an article talking about how we don't have to worry about inflation or that the inflation might be high someday, you will know that what they really mean is that inflation is rocketing out of control and they are trying desperately to talk you into believing that it is actually low. However, it only takes one trip to the grocery store or the gas station to see that they are full of lies. Prepare now before it is too late.
ReplyDeleteNot that like to see my food prices rise. Currently I pay $2.45 for a gallon of milk, a 3.5% increase will take it to $2.53 or eight cents additional. I don't think that will justify food riots.
ReplyDeleteAs it is, many produce items have doubled in price. For example Roma tomatoes have always been less than $1.00 a pound, now they are in the $2.00 per pound range. My solution is I simply don't buy them, they will rot in the stores before I'll pay $2.00 for Mexican produce. Thanks to a law in California, all produce must be labeled with the country of origin. I refuse to buy Mexican produce.
"The progressives control the media. You may have noticed that they lie, a lot.
ReplyDeleteTheir goal is to make you THINK that inflation is low by talking about what would happen IF it went high."
Yeh,3.46
its that well known that Elite liberal progressive are secret commies of the rich .
Comrade Ben , says inflation is low and that bailouts for Bond holders and so the Plebian owned Central bank can proceed full speed ahead with counterfiet money printing .
He is 100% sure that he has low inflation under full control .
And the billionare Elite owned Liberal "progressive" MSM ,CNN and Pravda /Fox commie propaganda system ,agree and say :
Whatever Comrade Ben says is true.
IS AMERICAN TRUE
"Inflation is very , very low"
Its only your eyes and your thin pocketbook that is deceiving ordinary Americans .
Its all clearly a sneaky ,disguised "Commie plot" for a Corporate State system run for the benifit of commies of the so called liberal "progressives" poor class.