Rising U.S. Food Prices are About to Eat Away at Your Savings

Wednesday, August 1, 2012
By Paul Martin

Ben Gersten
Market Oracle
Aug 01, 2012

As U.S. households prepare for Recession 2013 , they’ll have trouble saving as one constant expense is starting to take a sharp climb: food prices.

Higher U.S. food prices are the last thing the country needs as 2013 is set to bring with it a painful bunch of tax increases and the ominous fiscal cliff, but U.S. consumers need to understand that their grocery bills are about take a much bigger chunk out of their wallets.

You see, the United States is in its worst drought since the Dust Bowl. Farmers for months have been grappling with the effects, which are trickling down to your local store shelves.

“In 2013 as a result of this drought we are looking at above-normal food price inflation,” U.S. Department of Agriculture (USDA) economist Richard Volpe told the Associated Press. “Consumers are certainly going to feel it.”

U.S. Food Prices Soar Across the Board
The USDA on July 25 issued a report warning every American to expect to pay 3%-4% more for groceries in 2013.

Beef prices will be hit the hardest, as they are expected to rise 4%-5%, followed by dairy product prices which could climb 3.5% -4.5%. Poultry and egg prices in 2013 are projected to go up 3%-4% and pork prices 2.5% to 3.5%, the agency said.

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