Go to San Jose Mercury News original
With food prices climbing far faster than inflation - and many staples rising at double-digit rates - some consumers are starting to ask themselves if they need to tighten their belts, both literally and figuratively.
Flour, milk and eggs are each up at least 24 percent for the year ending in February, about 10 times the inflation rate over the same period, according to the Consumer Price Index. Whole wheat bread and cheddar cheese are up 15 percent each. And chugging down a 2-liter bottle of soda will set you back 14 percent more.
Food prices on average have risen less than inflation since 1987 - and just 2.7 percent since 2000. And there was a sigh of relief Friday when the Consumer Price Index showed that increases in the overall cost of food slowed in February.
But economists worry that powerful forces are fueling higher food prices - from the cost of oil and ethanol production to the weak dollar and global demand for food products. And they're not likely to abate anytime soon.
Despite the price relief in February, "it would be hard to see food prices being anything less than 4 percent higher overall for the year," said Ephraim Leibtag, a U.S. Department of Agriculture economist.
That scenario would only compound the financial pressure on consumers as the nation slips closer to recession, layoffs mount, home values slump and banks slow the flow of credit. Rising food prices simply provide Americans with daily reminders that
their food dollar isn't stretching as far.
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