| Rising food prices squeeze consumers With whole milk costing 21 percent more than it did a year ago, Nereida Bernuth has developed an eagle eye for sales. ''It's really hard,'' Bernuth, of Coral Springs, said of rising food prices -- milk in particular. When she saw a gallon for $4.14 recently at Wal-Mart, she bought two jugs and froze one. ''I imagine it's hard for families with little kids,'' she said. It's not imagination at all. Labor Department inflation data released Wednesday showed that U.S. food prices rose by 4.1 percent for the 12 months ending in July. A deeper look at the numbers reveals prices of milk, eggs and other diet essentials 30 percent higher in some cases. Already stung by a two-year rise in gasoline prices, consumers now face sharply higher prices for foods they can't do without. That may go a long way to explaining why, despite healthy job statistics, Americans remain glum about the economy. Meeting with economic writers last week, President Bush dismissed polls that show Americans down on the economy and expressed surprise that inflation is one of the stated concerns. But the numbers reveal the extent to which Americans are being pinched. The Bureau of Labor Statistics said in its July inflation report that egg prices are 33.7 percent higher than in July 2006. Over the same period, according to the department's consumer price index, whole milk was up 21.1 percent; fresh chicken 8.4 percent; oranges 13.6 percent; dried beans 11.5 percent and white bread 8.8 percent. Why are food prices rising? The answer is complex. It's partly because of corn prices, driven up by congressional mandates for ethanol production, which have reduced corn available for animal feed. It's also because of tougher immigration enforcement hurting the farm labor pool and a late spring freeze damaging fruit and vegetable crops. And it's because of higher diesel fuel costs to run tractors and attractive foreign markets that take U.S. production. ------------------------------------------------------------------------------------------------------------------------------------------- Food prices in dollar terms are up by more than 30% on a year ago, according to the Economist commodity-price index. The rise in sterling and most other currencies is less, but still significant. |
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By Faith Enoch was translated that he should not see death: and was not found, because YAHUVEH had translated him: for before his translation he had this testimony, that he pleased YAHUVEH. Hebrews 11:5