Food inflation hits U.S.
Tuesday, February 1, 2011
Retail bacon prices were supposed to drop off at the end of summer as that wonderful season associated with fresh garden tomatoes came to an end. Instead, prices went the other way, according to the U.S. Bureau of Labor Statistics.
Its monthly Consumer Price Index indicates that September bacon prices averaged $4.77 (all figures in U.S. dollars) a pound in October, up from $4.57 in September and 33 per cent higher than a year earlier. It's the highest monthly average, unadjusted for inflation, since 1980.
Speaking of inflation, a broader consumer price index tracking beef, pork, poultry, fish and eggs rose for the ninth time in 10 months, a total of 5.8 per cent from the previous October.
Why? Cattle and hog herds shrank in the previous year, at least partially because of expensive corn. On top of that, there's more retail demand because more Americans are eating at home. Food prices are expected to continue the trend in 2011. BF