We read today that US economists are predicting food prices could rise 3-4% this year. They rose 4% this past year, and a global demand for grain is pushing prices up consistently. Food experts and even the USDA's chief economist are saying that food prices are expected to rise faster than the general inflation rate. Increasing grain prices affect the cost, down the line, of meat - especially beef. Farmers can't absorb all the costs of grain. (Hmm - maybe another reason to go back to grass-fed beef?)
The growing demand for biofuels is also pushing up the cost of grains - especially corn and soybeans. This is good news for growers, but bad news for livestock farming and consumers.
How do you feel about rising prices? Should we pay more for our food anyway? Or do you think this fuel even more GMO products and crops?
More on Frugality and Food Prices
• Price Check: Are You Cutting Your Grocery Budget?
• Price Check: Coping With Rising Food Costs
• Supermarket Saver: How Much to Pay for Olive Oil?
• Doing More With Less: The Bagel and Lox Edition
• Source: USA Today/Reuters
(Image credit: Winslow Townson for AP)