Wednesday, August 27, 2008

As gas prices go down, so will food, right? No.

Consumers hoping for easing of supercharged inflation likely won’t see it

Corn and soybeans have dropped 24 percent and 17 percent, respectively, in the last two months but food prices have continued to go through the roof. If commodity prices have dropped, why are food costs still going up? This article says that retail prices for cereal, eggs, cheese and meat generally lag by several months or longer. With commodity prices being so high this past year, its no wonder that retail food prices in the U.S. have jumped on average 6 percent this year — triple the normal inflation rate of around 2 percent.

I thought it was just a rumor that food manufacturers have done such things as “shrinking boxes of cereal and bags of potato chips so they can sell less product for the same price.” The article also mentions a factor that is keeping food prices high: Although commodities prices have gone down, they're still well above historical levels. Corn and soybeans have dropped 24 percent and 17 percent, respectively, in the last two months but are still about double where they were two years ago.

Any comments on this supercharged inflation or what the future holds in regard to food prices?

Posted by Corey of Project Liberty


  1. Hey all, yeah, I got a comment! In my opinion there is no better investment than Food, a Wedding Chapel, a Divorce attorney and a Mortuary !! Think about it? As long as people walk this earth, we gonna have to buy food because we're to darn lazy to grow our own, and sure couples are going to live together with out getting married, but for the most part wedding bells are gonna be chiming everyday. When the wedding bells sound, almost the next day we hear the courts hammer pounding an end to it, and we all know to well that every man has one appointment to make, that's with his Creator! so invest in a morgue and you'll go rich! MARRING AND BURYING you can't go wrong, throw in a mix of grocery stores, and boom, you can retire! :)
    any body wanna start a business venture?

  2. Dino you're so full of stuff dude! You 'bahamian' you! ha ha!



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