As a follow up to recent blog posts (here, here, and here) where rising food prices have been discussed, the most current numbers have been released. What many of us already know from visits to the grocery store is that food prices have increased dramatically.
Food prices rose by 3.9 percent in the month of February, making this the largest increase since November of 1974. An article from the Associated Press explains the rise in food prices while also showing the rise in energy prices:
The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February — double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January’s 0.5 percent rise.
Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.
Energy prices rose 3.3 percent last month, led by a 3.7 percent increase in gasoline costs.
As the AP states — and which we’ve been saying here on the PowerBlog — there are many culprits behind rising food prices: “Food costs, meanwhile, are rising. Bad weather in the past year has damaged crops in Australia, Russia, and South America. Demand for corn for ethanol use has also contributed to the increase.”