Reuters: Food prices to rise 9 percent a year: analyst

[marmar]

Food prices to rise 9 percent a year: analyst
Thu May 29, 2008 5:40pm EDT



WASHINGTON (Reuters) - U.S. food prices will rise a stiff 9 percent a year through 2012, the largest increase since 1979 and the result of record-high crop prices, the head of an economic consulting company said on Thursday.

The projections by Bill Lapp of Advanced Economic Solutions are higher than the latest U.S. Agriculture Department forecast of 5 percent for this year. USDA and Lapp have increased their estimates by 1.5 percentage points since February.

During a telephone news conference, Lapp said he was completing a new analysis of food and commodity prices. He foresaw average corn prices of $5.25 a bushel through 2012, with wheat around $6.50 and soybeans near $11.

"When I do that analysis and look at the relationship between that and food prices, I get a 2008-12 average annual rate of increase in the consumer price index for food of 9.0 percent," he said.

Lapp was chief economist for ConAgra Foods Inc, one of the largest U.S. foodmakers, before opening his consulting firm which is based in Omaha, Nebraska.

A 9 percent increase would be the largest since 11 percent in 1979. Lapp spoke during a teleconference sponsored by the Environmental Working Group.

Americans spend more than $1 trillion a year on groceries, snacks, carry-out food and meals at restaurants. ......(more)

The complete piece is at: http://www.reuters.com/article/newsOne/idUSN2933542820080529

[Double T]

1. Food and Energy Prices are rising at double digit annual rates. Wages are FLAT.

Yep, that works!!

[razors edge]

2. Pulled out an old reloading catalog from 1994 today,

and found gunpowder has went from $9/lb to $23/lb. Thats almost 11% per year.

I was surprised to find out the Fed's presses were that slow, they need to outsource the printing and get this over with so we can get on to starting a new country after they have finished killing this one.

The death of a thousand cuts, to your savings value.