After holding steady for two years, food prices in the United States are rising once again, due to growing demand and tight supplies of wheat, corn and other key commodities.
That means American consumers are being hit with higher grocery bills at a time when gas prices are already starting to dent household budgets. On the bright side, economists say the recent spike in fuel prices isn’t yet translating into higher costs at the supermarket.
For the moment, food producers and retailers have been absorbing higher energy costs and have pledged not to pass them on.
Still, according to the U.S. government’s Consumer Price Index, food prices in January rose 1.8% from the prior year, marking the fastest pace since 2009.
A 16 oz. bag of potato chips, for example, sold for an average price of $4.79 nationwide, according to January CPI data. That’s up 5 cents from the same month last year, and nearly $1.40 more than in 2001. Prices for bread, eggs and many other consumer staples were also significantly higher.
Those increases can add up quickly for consumers already struggling with rising gas prices, high unemployment and stagnant wage growth. In 2008, the average taxpayer earned just $33,000 a year, which is actually down from twenty years ago.
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At least AP is already coming out saying that it isn’t po’ obama’s fault. When GW was president the media was on his case when it hit 3 but now they are all sleeping or dead.