Thursday, January 17, 2008

Food Costs Jump 4.9% in 2007; Biggest Gain Since 1990

What is the similarity? Both times a Bush was President.
Inflation truly hit home in 2007 with food prices rising 4.9 percent, the most since 1990, as energy costs for farmers surged and the production of crops, livestock and dairy products failed to keep pace with increased global demand.

Dairy prices gained the most of all foods last year, with milk surging 19.3 percent, the Labor Department said Wednesday. Fruits and vegetables increased 5.9 percent and cereal and baked-goods prices rose 5.4 percent. Bread prices jumped 10.5 percent, according to the report.

Companies including Kellogg Co. and General Mills Inc., the largest U.S. cereal-producers, boosted prices as the cost of commodities such as wheat reached record highs.

"If they're going to pay more for food, people offset that by being more frugal users of food and looking at other parts of their spending where they feel they can cut back," said Michael Walden, an economics professor at North Carolina State University in Raleigh. "Likely that would be entertainment, electronics, higher-end clothing, vacations."
and why are food costs rising so quickly?
One of the driving forces for higher food prices was the rising cost of fuel. Farmers and ranchers, along with transport companies, felt the same pinch that many consumers did in 2007 as energy prices, which include gasoline and diesel fuel, rose 17.4 percent.
We attacked an oil rich nation for what most beleive was the oil, yet the vast majority of American people have reaped no gain from this endless and destructive war.

The American people have been screwed and not even kissed while the Bush cronies have laughed all the way to the bank over the bodies of the dead soldiers and Iraqi civilians. Are you finally fed up enough? You elected this murderous moron, not once but twice and this is the result. His father was a poor President, this one is the worst in American history.

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