Food Prices Rising at Fastest Rate in 17 Years [View All]

[gristy]

Source: New York Post

U.S. food prices rose 4 percent in 2007, compared with an average 2.5 percent annual rise for the last 15 years, according to the U.S. Department of Agriculture. And the agency says 2008 could be worse, with a rise of as much as 4.5 percent.

Higher prices for food and energy are again expected to play a leading role in pushing the government's consumer price index higher for March.

Analysts are forecasting that Wednesday's Department of Labor report will show the Consumer Price Index rose at a 4 percent annual rate in the first three months of the year, up from last year's overall rise of 2.8 percent.

Read more: http://www.nypost.com/seven/04142008/business/food_prices_rising_at_fastest_rate_in_17_106515.htm

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Though 4% food price inflation in 2007 and projected 4.5% in 2008 is bad enough, my feeling is that the gov't systematically understates inflation, including food prices. How else to keep their Social Security cost of living increases under control? Every time I go to the supermarket nowadays is a shock.