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Food Prices Rise 0.7 Percent in January

Tuesday, February 26, 2008

(American Meat Institute)

Food prices, which have been surging because of increased demand stemming from ethanol production, rose by 0.7 percent last month, the biggest monthly increase in three years, according to a Labor Department report released today. The spike was the largest monthly increase since October 2004.

Prices for beef, bakery products and eggs were all up sharply.

Overall, U.S. wholesale prices rose 1 percent in January, much higher than the forecasted .4 percent increase, as a result of the hiking food and energy costs.

The accelerating costs of food and energy have caused producer prices to rocket 7.4 percent in the United States in the past twelve months to January.

For more information on the impact that ethanol policy is having on the competitiveness of the food industry, visit http://balancedfoodandfuel-old.org.

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