What goes up doesn’t always come down: The rising cost of food (Today’s DIetician)

Today’s Dietician published a magazine article on how the retail price of nearly all foods has risen over the past several years and most markedly in recent months. The USDA reports that food prices rose 4% overall in 2007, outpacing inflation and surpassing the 10-year average increase of 2.6%. According to the Bureau of Labor Statistics, food prices increased at a 4.7% compound annual rate from December 2007 to February 2008. Americans are feeling the crunch not only because we have enjoyed stable food prices for nearly two decades but also because the greatest source of sticker shock lies at the base of the food pyramid: grains. The most publicized factor behind higher food prices is the diversion of corn crops to ethanol production. IFPRI estimates that the increase in world ethanol demand was responsible for 30% of the rise in grain prices from 2000 to 2007.