Food Costs On Rise In United States

The United States has high unemployment rates, a shaky economy, and now to add the to the mix food costs are on the rise. There are two main reasons that food prices are on the rise and that is because of two commodities which are corn and wheat. For the last two years both of these commodities have been hit by crop disease, climate change, and natural disasters. With the severe drought in Russia the past 2 years they have stopped wheat exportation. A disease that is called wheat rust have destroyed crops in Africa plus other countries that are producing wheat so no exportation there. And in the United States corn is starting to be used to make ethanol which people are arguing if it is a sustainable fuel or not plus corn crop failures.

You will not only see rises in food products that you figure are made from corn and wheat like bread, cereals, and pasta but there are also a variety of other foods that use wheat and corn. Sweets are another thing that you will see a rise in from cookies to soft drinks to jams and jelly. All of these products are made with high fructose corn syrup so if corn is in short supply then the prices will rise on these products. Some companies may not raise the price but will decrease how much you get.

You will also be seeing an increase in what beef, chicken, and pork will cost because they are fed corn. Also this is not food for humans you will also see a rise in dog and cat food because most dry food contains corn as its primary ingredient and canned foods use wheat based products for thickness and meat chunks.

Consumer Price Index Summary

Table A. Percent changes in CPI for All Urban Consumers (CPI-U): U.S. city average  Consumer Price Index Data for July 2011 Food The food index rose 0.4 

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