Sticker Shock at the Supermarket: Food Prices Poised to Rise
October 15, 2009
Dan Burrows
DailyFinance
If there's any silver lining to a recession -- albeit a thin one -- it's that consumer prices typically go down. Make no mistake, deflation is a sign of a sick economy, but at least the net effect of cheaper prices for the basic necessities -- food, clothing and shelter -- helps folks get by when they are struggling to make ends meet
But consumers should brace themselves for things to change, especially at the supermarket. As the global and U.S. economies emerge from the downturn, economists predict that there is going to be some sticker shock at the checkout line. Food prices, they say, are heading higher and when you combine that with an unemployment rate that's expected to linger near a three-decade high for at least another year, it's even more unwelcome news.
The U.S. Department of Agriculture expects overall food prices to rise as much as 4% in the U.S. by the end of 2010. Yet, some economists think they could climb by as much as 5%. Even using the government's more conservative numbers, the price for eggs is forecast to rise 3% and beef is seen increasing 2%. Lamb, seafood and fish? All three categories are expected to jump as much as 5%.
A 5% boost in your grocery bill may not seem terribly devastating, but consider this: If you spend $300 a week on groceries now, you'll need to squeeze a raise of about a thousand dollars a year out of your boss (don't forget withholding tax) just to keep up with higher chicken, beef, pork and dairy prices. Good luck accomplishing that little feat with a 9.8% unemployment rate and companies looking into every nook and cranny in order to cut costs.
READ MORE http://standeyo.com/NEWS/09_Food_Water/091015.food.prices.2rise.html
Dan Burrows
DailyFinance
If there's any silver lining to a recession -- albeit a thin one -- it's that consumer prices typically go down. Make no mistake, deflation is a sign of a sick economy, but at least the net effect of cheaper prices for the basic necessities -- food, clothing and shelter -- helps folks get by when they are struggling to make ends meet
But consumers should brace themselves for things to change, especially at the supermarket. As the global and U.S. economies emerge from the downturn, economists predict that there is going to be some sticker shock at the checkout line. Food prices, they say, are heading higher and when you combine that with an unemployment rate that's expected to linger near a three-decade high for at least another year, it's even more unwelcome news.
The U.S. Department of Agriculture expects overall food prices to rise as much as 4% in the U.S. by the end of 2010. Yet, some economists think they could climb by as much as 5%. Even using the government's more conservative numbers, the price for eggs is forecast to rise 3% and beef is seen increasing 2%. Lamb, seafood and fish? All three categories are expected to jump as much as 5%.
A 5% boost in your grocery bill may not seem terribly devastating, but consider this: If you spend $300 a week on groceries now, you'll need to squeeze a raise of about a thousand dollars a year out of your boss (don't forget withholding tax) just to keep up with higher chicken, beef, pork and dairy prices. Good luck accomplishing that little feat with a 9.8% unemployment rate and companies looking into every nook and cranny in order to cut costs.
READ MORE http://standeyo.com/NEWS/09_Food_Water/091015.food.prices.2rise.html
Comment
"Destroying the New World Order"
THANK YOU FOR SUPPORTING THE SITE!
Latest Activity
- Top News
- Everything
In the Political Realm They've Gone One Step Too Far!
I'm Your Host here on a completely new program. We call it One Step Too Far! Join us now for some…See More
All In The Family | Mike Meets Archie For The First Time | The Norman Lear Effect
"Wow almost as brainless as entitled as the college dolts who argued with Charlie Kirk before his…"
America Copied Germany’s Jerry Can — But Missed The One Genius Detail that Made All the Difference
America Copied Germany’s WWII Jerry Can — But Missed The One Genuis Detail that Made All the DifferenceIn World War II, Allied armies were losing up to half ...
What was the Significance of the F-94 C and What role in History?
It’s July 19, 1952 over White House forbidden airspace and Captain William Patterson observes…See More
FLUORIDEGATE: An American Tragedy. a film by Dr. David Kennedy
FLUORIDEGATE: An American Tragedy, is a feature documentary that reveals the tragedy of how government, industry and trade associations protect and promote a...
Rendezvous With The Unknown
Rendezvous With the Unknown Chapter I It was about 9:00 am when I received a text on my phone from…See More
© 2025 Created by truth.
Powered by
You need to be a member of 12160 Social Network to add comments!
Join 12160 Social Network