Food prices rose 7 percent in ‘08
Sticker shock in the grocery aisles climbed in 2008 — and likely will get worse this year.
According to the American Farm Bureau Federation’s Marketbasket Survey, the total cost of 16 basic grocery items in the last quarter of 2008 was down about 50 cents from the preceding quarter, providing some relief. But overall prices rose about 7 percent from the beginning of the year, as economists had predicted.
QUIZ: What are the caloric values of your favorite treats?"Despite the recent price collapse in oil prices and steep declines in farm commodity prices, food prices have not yet declined significantly," said Jim Sartwelle, an economist with the Farm Bureau paydayloans.
Food industry giants, which blamed high commodity prices for increased prices in the grocery aisle, have yet to lower the prices accordingly. "Sticky prices, once a somewhat obscure economic concept to most food consumers, are the new reality as we move into 2009," Sartwelle said in a statement.
Still, in the last quarter, the cost of some items — apples, flour, cheddar cheese, bacon — dipped significantly. The cost of milk, ground chuck, corn oil and pork chops also fell.