Inflation will eat up your food budget! Inflation is the worst form of robbery.
Often we don’t even realize that we are being robbed.
Ally is helping her mom prepare for food inflation.
Last summer’s drought is largely responsible for the higher food prices in 2012. According to the USDA Economic Research Service (ERS):
“Retail food prices, despite the severe drought in the Midwest, have been flat in 2012. The food-at-home Consumer Price Index (CPI) increased a total of 0.3 percent from January to November 2012. Prices rose for beef and veal, poultry, fruit, and other foods in 2012…The drought has affected prices for corn and soybeans as well as other field crops, which should, in turn, drive up retail food prices. However, the transmission of commodity price changes into retail prices typically takes several months to occur, and most of the impact of the drought is expected to be realized in 2013.”
Inflation due to the 2012 drought, especially in processed foods, will not be fully felt until later this year. The USDA has raised its inflation forecast to 4 to 5 percent. Normal food inflation is about 2.5 percent. So, we are looking at approximately double the rate in 2013.
While this prediction is not cheery, it doesn’t take into consideration QE3 (Quantitative Easing 3), which will drive up the cost of EVERYTHING even more.
According to The Sovereign Investor Expect in 2013:
- Chicken wings up 100 percent. (Whole chickens are already up 6 percent since April; chicken breasts are up 5 percent).
- Apples up 20 to 30 percent.
- Eggs up 4 percent.
- Cooking oil is expected to jump 5 percent.
- Diary prices are to rise 5 to 10 percent.
As Food Prices Soar, What Can You Do?
- Fill It Up: As you can see, the rate of food inflation is much higher than the interest anyone can receive from money in the bank. If you don’t already have a freezer, purchase one and fill it.
- Create a Food Fund: Begin to purchase in bulk and fill your pantry–You’ll not only save an initial 10 percent, but as food continues to rise, you’ll save even more.
- Stop Eating This: Expensive processed and junk foods. (Learn to cook, not only will food be tastier, but healthier.)
- Start: Planning a spring garden.
- Don’t waste food. Find ways to use everything you purchase. Wasted food is money down the drain.
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