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Americans are noticing a significant rise in food prices recently. Checkout at the supermarket is getting more painful in the U.S. as need rises globally for key goods used in food production. Source for this article - Global food inflation starting to hit U.S. grocery budgets harder by MoneyBlogNewz.

Why it is detrimental to food price increases

Food inflation in January rose 1.8 percent year-over-year, according to the U.S. Consumer Price Index. The price of goods throughout the world are increasing with the bad weather, need and fuel prices rising. Meat costs seemed to be affected by this the most. There are fewer supplies. This has lead corn in January to reach a 30 year high. Feeding livestock takes corn. That means it costs more to pay for livestock to live. Plus, people in China, India and other developing countries with growing economies want to eat more meat. There has been a 1.5 billion pound increase in beef exports in the U.S. This has happened in just five years time.

Price of food in U.S. average data

With the Global supply of meat, consumers in the U.S. have to bid against other countries. Pork prices are up 12 percent from a year ago, beef is up 6 percent and poultry 2 percent. The grocery store costs are increasing in other products too since commodity costs are increasing. January CPI data shows that costs for bread, milk, eggs and other staples are rising significantly. Since the coffee bean prices went up 77 percent last year, coffee has started becoming more expensive while cereal isn’t as cheap with rising wheat costs. The 2011 expectations for pork are insane. There is anticipated to be a 10 percent increase in prices. Beef is expected to go up as well. It is supposed to have a 7 percent increase. With Americans eating more chicken, the price should also go up. A 5 percent increase is expected.

U.S. food price perspective for 2011

The U.S. Department of Agriculture points out that a 3 to 4 percent increase in U.S. food prices is expected in 2011. The idea that this inflation in food costs won’t affect Americans is there. U.S. policy makers don’t want to admit to the truth. The effect of food inflation on consumers was described to be “temporary and relatively modest,” by Federal Reserve Chairman Ben Bernanke. This was said in a Senate Banking Committee last week. The Fed doesn't factor in food and energy prices when it calculates inflation, but more than 12 percent of after-tax income in U.S. households is now spent on fuel and food. The increases are adding up fast for consumers dealing with high unemployment and stagnant wage growth. In 2008, the average taxpayer earned $33,000 a year, far less than two decades ago.

Articles cited

CNN Money

money.cnn.com/2011/03/08/news/economy/food_prices/index.htm" target="_blank

Seeking Alpha

seekingalpha.com/article/256992-rising-prices-are-hitting-consumers-harder-than-the-fed-will-admit" target="_blank

Agrimoney.com

agrimoney.com/news/meat---and-oil---to-lead-climb-in-us-food-prices--2903.html" target="_blank