Food Prices

Discussion in 'Economy' started by Madeline, Sep 6, 2010.

  1. Madeline
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    Madeline BANNED

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    Okay, so I am no economic genius, but I go grocery like anyone else. The price of food has been extremely unstable here, but has mostly been going up. E.g., ground round went from $2.29 lb last week on sale to $3.39 lb this week, with ground sirloin at $5.49 lb. Similar things have been happening with bread, milk, eggs and cereal.....semi-reasonable sale prices coupled with VERY high "normal" prices.

    So I have a few questions.

    WTF is going on? I thought we had "almost no inflation"? I might not have all these prices memorized, but I know cereal's normal price has doubled in a year....and for sure, all the rest are up steeply.

    Has there been some sort of agricultural warfare I haven't heard about? Why's this price increase affecting the basics, but evidentially not such things as cheese, yogurt, or ice cream?

    WTF pays $5.49 for ground sirloin? I'm not sure I'd pay that much for a decent lamb chop.
     
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  2. Douger
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    Douger BANNED

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  3. johnrocks
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    johnrocks Silver Member

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    Food and energy costs isn't counted in the inflation formula anymore...go figure, I guess it didn't fit in with either sides talking points, it was changed;I think; after the Carter years.
     
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  4. uscitizen
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    uscitizen Senior Member

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    How can we have a recovery if consumers do not spend more money?
     
  5. Madeline
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    Madeline BANNED

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    Something funny is happening, I swear it. Gasoline prices are stable...they've been below $2.50 gal for over a year. But for some reason, natural gas prices around here are exploding. I strongly suspect illegal price gouging.

    How can they say "we have almost no inflation" if food and heating cost twice what they did, or more? They don't consider food or energy in indexing inflation? Seriously?

    WTF?????

     
  6. uscitizen
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    uscitizen Senior Member

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    Not illegal price gouging. Just people exercising their right to speculate that you will pay more for natural gas this winter.
    Another positive sign for economic recovery.
     
  7. Greenbeard
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    Greenbeard Gold Member

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    I haven't really noticed it and the food CPI has seen some inflation but if you're seeing things jumping around by 50% from week to week, that's a bit out of the ordinary.

    Here's what they have to say about meat:

     
  8. johnrocks
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    johnrocks Silver Member

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    Spending more does not equate to more demand if it is mere increased prices.
     
  9. Rat in the Hat
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    Rat in the Hat Gold Member

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    You're lucky your gas prices are stable, ours are going nuts.

    Wednesday on my way to work all of the stations were $2.54. On the way home, they went to $2.79. This after crude prices dropped almost $3.00 per barrel on Tuesday.

    They gave us a little break on Friday, dropping to $2.77.

    Yesterday, they all went to $2.64.

    Sure looks like holiday price gouging to me.
     
  10. Mr. H.
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    Mr. H. Diamond Member

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    [​IMG]

    Given the highly negative outlook for gas pricing at the present time, it is not surprising that it will likely be the winter of 2012-13 before natural gas futures prices approach the $6/Mcf level as reflected by the current futures prices.

    Here's a link to a commentary on natural gas prices and pricing.

    RIGZONE - Musings: The Gas Bulls of Summer Turn into Bears
     

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