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If you’re feeling sticker shock from higher grocery prices, it’s not your imagination, and no relief is in sight.

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.

Corn prices are up 59.4 percent from last year. Wheat is up 81 percent, and soybeans are up 29 percent, said Ephraim Leibtag, deputy director for research at the U.S. Department of Agriculture’s Economic Research Service.

The USDA forecast says consumer food prices will rise 3 to 4 percent this year.

The wholesale price report comes ahead of a Labor Department report on consumer prices, due out today, forecast to show overall prices rising 0.4 percent in February. The January report showed sharply higher year-over-year price increases for several foods, including citrus fruit, up 10.6 percent; pork, up 9.9 percent; ground beef, up 9.9 percent; coffee, up 4.9 percent and potatoes, up 5.9 percent. Those increases preceded the recent run-up in oil prices that drove gasoline prices higher amid unrest in Egypt and Libya. The higher energy costs will also affect grocery prices, Leibtag said.

“We have seen higher oil prices. Not all of that has come through yet. There’s still more to come,” Leibtag said of grocery price increases.

But Brian Todd, president of the nonprofit Food Institute, said whether the higher gas prices will translate into even higher grocery prices for consumers will depend on how long the spike in gas prices lasts. Retailers have focused on cost-cutting and are concerned about passing price increases on to consumers, he said.

“They are very cognizant of the fact that consumers are very budget conscious and they have many options to take their business to alternative retailers — their competitors,” he said. “That plays a major role in them holding increases to a minimum level or not passing them on at all.”

Still, the higher wholesale prices are bringing visible changes. Wendy’s, which is paying higher prices for tomatoes, now puts them on hamburgers only by request. Starbucks and Dunkin’ Donuts have raised prices because they’re paying more for coffee beans.

Contributing: AP


http://www.suntimes.com/business/43...-in-36-years-from-beef-to-eggs-to-butter.html
 

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Higher fuel prices are inflating commodity's across the board

Also State regulations from the "Green Sceam Team" over at C.A.R.B have made it very hard on truckers to make a living
 

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It would be a shame if this hit Jack n a box's 2 taco's for 99 cents. I love those dam things (You got to die of something)

What can you do beside grow your own?:huh:
 

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It would be a shame if this hit Jack n a box's 2 taco's for 99 cents. I love those dam things (You got to die of something)

What can you do beside grow your own?:huh:
:WTF


Only in texas.....:bang :down:

Fookers...:D



konw wonder ya got illegals comming outta yer ears....:D
 

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As I have said before...you can thank the speculators for this huge increase. Corn, soybeans, wheat...the favorites of the commodities futures gamblers. :crazy:
 

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As I have said before...you can thank the speculators for this huge increase. Corn, soybeans, wheat...the favorites of the commodities futures gamblers. :crazy:
Data to back that up? Supply and demand mixed with high fuel costs are certainly part of price increase. "Speculators", who are actually investors and middle men in the market, have become our all-purpose whipping boys because most people don't really know what they do. They guess at the value of commodities months in the future based on supply, demand and cost of moving the product to consumers. It's a necessary step in the process because growers are not equipped to do the processing and shipping of the food. And since growers need some sense of what their product is going to be worth months ahead of actually harvesting, this process provides some degree of certainty for them. Everything that causes us pain doesn't necessarily have an evil cigar smoker sitting behind a desk causing the pain. The world economic system is practically a living breathing entity of it's own with thousands of factors playing into every up and down. Oversimplifying doesn't do anyone any good.
 

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Data to back that up? Supply and demand mixed with high fuel costs are certainly part of price increase. "Speculators", who are actually investors and middle men in the market, have become our all-purpose whipping boys because most people don't really know what they do. They guess at the value of commodities months in the future based on supply, demand and cost of moving the product to consumers. It's a necessary step in the process because growers are not equipped to do the processing and shipping of the food. And since growers need some sense of what their product is going to be worth months ahead of actually harvesting, this process provides some degree of certainty for them. Everything that causes us pain doesn't necessarily have an evil cigar smoker sitting behind a desk causing the pain. The world economic system is practically a living breathing entity of it's own with thousands of factors playing into every up and down. Oversimplifying doesn't do anyone any good.
I'd have to agree on both-- Supply and demand is a huge part with funky weather.. Some years we got in the corn and fall soy, other times if the fields were too wet for too long you couldn't risk the second crop. It would drive you to a late plant and if an early freeze hit you were screwed..Which double sucked because you'd use the fall tillage to reintroduce nitrogen back into the soil.. so you either had less fertil soil next year or you paid for fertilizer.

A couple of crappy weather paterns in different locations and you'd have a lower supply. Not only for human foods but a bad corn crop affects supersweet feeds and pork prices primarily.

If the speculators see supply not meeting demand they'll jump in to buy low and sell high-- The American way!
 

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We have the beginnings of out of control inflation foreign policy is a complete mess fuel prices are high and going higher unemployment is about 9 percent.
Did someone let jimmy Carter back in the White House or is there some kind of pattern developing here?
 

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We have the beginnings of out of control inflation foreign policy is a complete mess fuel prices are high and going higher unemployment is about 9 percent.
Did someone let jimmy Carter back in the White House or is there some kind of pattern developing here?
:laughing: By the time this **** runs it's course, we will all be begging for another Carter. This is Carter, tripled and pumped full of steroids..
 

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Our (lack of) guberment has been cookin' the books for a couple of years, now, in order to disguise our nations rate of inflation.
Anyone that believes our rate of inflation is actually what the advertised rates are is a stupid, blind fool.
I think in 2009 the roi was about 8%. In 2010 closer to 11%. This year.................... hold on to your wallet.
 
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