The Chicago Sun Times reports that “wholesale food prices spiked 3.9 percent in February from January, the biggest jump in 36 years, the Labor Department said Wednesday. Most of the increase was because of a sharp rise in vegetable costs, but meat and dairy prices also jumped. Harsh winter freezes in Florida, Texas and other Southern states damaged crops, driving up vegetable prices. Meanwhile global prices for corn, wheat and soybeans have risen sharply in the past year. That has raised the price of animal feed, pushing up the cost of eggs, beef and milk at the wholesale and consumer level.”
- KC's View:
- While nobody knows what is going to happen for sure, there seems to be a real sense out there that we’re all going to face what Bob Murphy used to call “nine miles of bad road” when it comes to food prices. In the US, we’re used to not having to spend much of our discretionary income on food, but that may be changing for the foreseeable future.