Food and Gas Prices Climbing
By George Anderson
The Consumer Price Index (CPI) is at its highest level since 1990 with the annual rate of inflation now at 5.1 percent, reports the Christian Science Monitor.
Rising gasoline and food prices have been the primary culprits behind the higher inflation numbers.
The cost of filling up your tank has increased dramatically since the beginning of the year. The price for a gallon of gas has already gone up 30 cents.
Fewer cows has meant sizeable price increases for dairy products including milk, which will see the cost of a gallon go up 50 cents in May. The low-carb diet movement has increased
demand and prices for items such as bacon and eggs.
In some cases, consumers have been spared the discomfort of higher prices as foodservice and retail operators absorb costs.
Joe and Mike Chaghlil, owners of Il Forno, a restaurant in New York, are one such example.
They used to make a decent profit selling ham and egg sandwiches for $2.50. But, according to Hoe Chaghlil, with the price of eggs doubling, ham going from 42 cents to 56 cents
a pound and the cost of bread rising, they’re “probably losing money on each sandwich.”
Moderator’s Comment: Do you expect the cost of food and gas to remain high? How will this affect consumer spending?
What will it mean for retail?
Sticker shock: The feeling you get when you get home from grocery shopping, check your receipt and realize you paid $7 for two half-gallons of organic milk.
George Anderson – Moderator