Food Price Changes
Chart of the Week for October 24-30, 2003
Agricultural prices have risen sharply since September of 2002 as a result of increased export demand for corn, grain and beef. A Canadian ban on beef has pushed U.S. wholesale beef prices up $19.50 per 100 pounds above last year’s levels. Overall, the agricultural index year over year is up 13% while actual food price inflation has shown a modest increase of just over 2%. Historically, an increase in food prices lags the agricultural price change by several months. These export sales are welcomed by food producers, but food consumers might feel differently.
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