Food prices rise sharply - and there's more to come

San Francisco Chronicle ^ | Thursday, December 16, 2010 | Stacy Finz, Chronicle Staff Writer

[Mad Dawgg]

For the first time since 2008, inflation is hitting consumers in the stomach.

Grocery prices grew by more than 1 1/2 times the overall rate of inflation this year, outpaced only by costs of transportation and medical care, according to numbers released Wednesday by the U.S. Bureau of Labor Statistics.

Economists predict that this is only the beginning. Fueled by the higher costs of wheat, sugar, corn, soybeans and energy, shoppers could see as much as a 4 percent increase at the supermarket checkout next year.

[gleeaikin]

Yes, seed packets keep. You might loose 10% of germination after a year. More as the years go by.

[gleeaikin]

I think in Germany the solar farmers put the panels high enough off the ground that they can grow food under them. I could imagine that in very sunny/hot places, that might even be beneficial.

[Lazamataz]

When the public switches on TV then they are supporting it. Prince Al Waleed’s Fox or his ABC or his CNN are all about the same. He has even more control over at NBC/MSNBC/CNBC/Universal. The Saudis bought the white hut in 2008 and they want their money’s worth.

I need to buy another 50 inch plasma TV. That reminds me. I need to and you helped me remember.

[Rocky]

But, I thought the MSM said Palin had it wrong. There was no food cost inflation. That was just last month. Now we hear that food prices have been going up this YEAR.

As I recall, the column criticizing Palin was published in the Wall Street Journal.

Et tu, WSJ?

[Clintonfatigued]

Things will get worse before they get better.

[patriciaruth]

How much is Glenn Beck’s recommended seed pack?

survivalistseed.com charges $140 for the heirloom seeds of vegetables that will produce seeds that came be replanted next year.

Most plant seed sold now is hybrid and doesn’t reproduce true to self seeds.

However, some of the best things to have are turnips, potatoes and oats which could withstand the doomsday climate scenario. And I don’t see those on the heirloom seed lists.

[ozark hilljilly]

http://rareseeds.com/shop/

Nice little local company here in the Mo. Ozarks. Kinda leans in the vegetarian/tree-hugger way, but they have an awesome collection of heirloom seeds from all over. Their print catalog is pure seed p0rn. Gorgeous photography, decent prices.

(and No, I don't work for them, but I do live near by!)

[algernonpj]

In addition to separating out the cost of food and energy from core inflation, there are several biases understating inflation that have been built into the CPI since the 1980's.

Originally the CPI was designed to measure the cost of a fixed basket of good, i.e. comparing apple to apples. In the early 1990’s the ‘substitution effect’ was introduced. For example if the price of steak went up ‘too much’ the price of hamburger was substituted. The CPI morphed from the cost of maintaining a certain standard of living to the cost of maintaining a declining standard of living.

Straight arithmetic weighting of the CPI components was shifted to a geometric weighting. Lower weighting is given to those CPI components that are rising in price, and a higher weighting to those items dropping in price.

Hedonics was introduced. This is my personal favorite. Hedonics adjusts the prices of goods for the increased pleasure the consumer derives from modifications to those goods, e.g. if you pay more for gas because of federally mandated additives, the additional cost does not count toward the CPI because of your increased pleasure in breathing ‘cleaner air’; if the cheapest new micro wave costs more than the older cheapest new micro wave, but has additional functionality, the additional cost is not added to the CPI.

Intervention analysis tones down severe upswings, e.g. again on gas, based on the assumption that what goes up will go down.

The CPI is were calculated the same way as in Reagan's Day:

[Bloody Sam Roberts]

Yeah they are spoiled. But all the love they provide is priceless.

Indeed. We call our pooch The World's Most Spoiled Rotten Dog. He knows it. But he's a peach of a hound.

[GailA]

Corn going to gasoline, instead of feeding the live stock, causing prices to go up..along with shortages of this food group.

[Spiff]

Got most of my year supply of food taken care of and natural gas for my CNG vehicle is holding steady at $1.52. I’m about to start raising rabbits for meat as well. I hope I’m somewhat ready for what’s coming.

Update: CNG per gallon price is dropping back down $.50 due to tax credits included in the tax cut bill to be signed today. So, my per gallon price is going to be $1.02. Looking at a propane/natural gas whole house backup generator possibly next year.

[Balding_Eagle]

See post #30.

[Red_Devil 232]

I have seen that exact same price hike on the Eight O’Clock 36 oz. whole coffee beens. I grind my own also and have at least three bags worth in reserve. My Wife and I drink a lot of coffee. I have weighed the amount of beens it takes for a full pot of coffee and now weigh out that amount and vaccum pack them and store in the freezer. Roasted Coffee beans loose flavor quickly.

[Red_Devil 232]

Wal-mart big wigs (regional types) show up quite often in the stores in thair areas. No Big deal. Unless the employees and Manager have not been doing what they are expected to do.

[Red_Devil 232]

My wife told me she would leave me if I ever cooked more than 1 chicken meal a week. :) My wife would leave me If I didn't. She is a chicken Hawk!

[BlueLancer]

"She is a chicken Hawk!"

Feisty little thing then, eh?

[esoxmagnum]

It might not be the chickens.... I think it may be my lack of culinary skills when it comes to birds. :)

[Red_Devil 232]

LOL!

[Red_Devil 232]

Hey! You been over here yet?

[HungarianGypsy]

**Freeper Kitchen Ping**

Perhaps Red_Devil 232 should be my assistant. The little Devil on my shoulder.