HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Topics » Economy & Education » Economy (Group) » Sharpest increase since 1...

Mon Jun 1, 2020, 04:00 PM

Sharpest increase since 1973: U.S. food prices see historic jump and are likely to stay high

As if trips to the grocery store weren’t nerve-wracking enough, U.S. shoppers lately have seen the costs of meat, eggs and even potatoes soar as the coronavirus has disrupted processing plants and distribution networks.

Overall, the cost of food bought to eat at home skyrocketed by the most in 46 years, and analysts caution that meat prices in particular could remain high as slaughterhouses struggle to maintain production levels while implementing procedures intended to keep workers healthy.

The Labor Department reports that the 2.6% jump in April food prices was the largest monthly increase in 46 years.

Prices for meats, poultry, fish and eggs increased the most, rising 4.3%. Although the 2.9% jump in cereals and bakery products wasn't as steep, it was still the largest increase the agency has recorded.

At: https://abcnews.go.com/Health/wireStory/us-food-prices-historic-jump-stay-high-70969164



Young shopper stocks up on cereal in a Connecticut supermarket in 1973.

April food prices saw the steepest monthly hike since currency and commodity price deregulation under Nixon led to a 6% jump in August of that year.

10 replies, 724 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 10 replies Author Time Post
Reply Sharpest increase since 1973: U.S. food prices see historic jump and are likely to stay high (Original post)
sandensea Jun 1 OP
msongs Jun 1 #1
sandensea Jun 1 #2
procon Jun 1 #3
sandensea Jun 1 #4
progree Jun 1 #5
sandensea Jun 1 #6
progree Jun 2 #7
sandensea Jun 2 #8
progree Jun 2 #9
sandensea Jun 2 #10

Response to sandensea (Original post)

Mon Jun 1, 2020, 04:05 PM

1. young shopper is now somewhere over 60 nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to msongs (Reply #1)

Mon Jun 1, 2020, 04:18 PM

2. Time flies!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to sandensea (Original post)

Mon Jun 1, 2020, 04:22 PM

3. Looks like seasonal veggies, fruits, and dried beans

are the menu items to buy. We'll have to learn to eat like most of the other people in the world who seem quite satisfied with those types of food.

I'm already about 75% vegetarian without any effort or intention on my part. Meats are tasty and I do admit to a bacon madness, so enjoy a small portion now and then, but meats sure mess with my digestion for several days so I just use very little.

Dairy is going to be a challenge.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to procon (Reply #3)

Mon Jun 1, 2020, 04:53 PM

4. Same here.

The minute beef makes its way back into your grocery cart - the total really starts to go up.

Plus, I found it just doesn't agree with me. Besides the fact that cows are sweet, and I don't approve of their treatment.



Reply to this post

Back to top Alert abuse Link here Permalink


Response to sandensea (Original post)

Mon Jun 1, 2020, 05:55 PM

5. Food at home: April: +2.6%. 12 months through April: +4.1%

Trump was promising a GDP growth rate of 4% or more. Instead we got a 4.1% food price increase for the past 12 months so far, but that will increase as May 2020 gets added in and May 2019 drops off the rolling 12 month period, and so on.

https://www.bls.gov/news.release/cpi.nr0.htm

Oh, and a negative GDP growth rate.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to progree (Reply #5)

Mon Jun 1, 2020, 06:00 PM

6. Trumponomics

Because GDP didn't grow all that much during the 3 "good" Trump years, it's now estimated that 2nd Qtr. GDP will be back down to its 2014 level.

That's what his trillion-dollar deficits got us: one stiff wind, and the economy folded like a house of cards.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to sandensea (Reply #6)

Tue Jun 2, 2020, 05:15 PM

7. The second quarter GDP drop could drop it down to the Q1 2011 level

Reply to this post

Back to top Alert abuse Link here Permalink


Response to progree (Reply #7)

Tue Jun 2, 2020, 05:42 PM

8. That would indeed be a colossal fall - worse even than any quarter in the Herbert Hoover years

So much so in fact, that I suspect the estimate was put out there to create a "pleasant surprise" once the actual number comes out in late July.

Consider this: a collapse to Q1-2011 levels (which, in constant 2012 dollars, was $15.713 trillion) would mean a 17.2% fall from Q1-2020 levels ($18.975 trillion).

But because quarterly growth rates are published on an annualized (x^4) basis, it would mean a headline number showing a whopping 53% collapse.

I think something closer to a 12% quarterly fall - i.e. a 40% fall, in the headline number - is more likely.

But, of course, I could be wrong - I hope not! As 40% is bad enough.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to sandensea (Reply #8)

Tue Jun 2, 2020, 06:01 PM

9. The FRB Atlanta says it's not a forecast for what they think the GDP will be

at the end of the quarter, but more like a snapshot based on economic reports released so far. When they say it doesn't include the impact of Covid19, I presume that means they aren't assuming the continued opening up of the economy either.

So yes, I don't expect GDP to end up down 52.8% (annualized) in Q2.

Hmm, the 15 economists that MarketWatch polls expect (median forecast) a drop of 27.7% in Q2 (annual rate)
https://www.marketwatch.com/economy-politics/calendar
(scroll down to near the bottom)

Reply to this post

Back to top Alert abuse Link here Permalink


Response to progree (Reply #9)

Tue Jun 2, 2020, 06:31 PM

10. -27.7% would be great, given the circumstances.

That would be a 7.8% quarterly fall.

It would be the worst since 1946 (amid World War II demobilization) - but definitely something we could recover from.

Cheeto and his institutional abuses? That'll take longer.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread