Thread: Ka-BOOM!
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Old 12-21-2007, 11:53 AM   #236
purplefrog
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I'd like to hear some responses to the article below. It resonates with my regular tracking of grocery prices. They are increasing and household budgets are being tested imo.
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High cost of food hard to swallow
Cox News Service

WASHINGTON -- Time and again this year, economists have assured consumers that the "core" inflation rate is tame, running at roughly 2 percent this year. President Bush agreed in September, saying, "inflation is low."

But millions of Americans shopping for holiday meals will pay significantly more than in 2006.

The government says food prices are up 4.4 percent compared with last year.
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That's about double the core rate, which excludes volatile food and energy prices. And experts think the trend will get worse.

Economists don't like to consider monthly costs for fuel and food because those prices can rise and fall dramatically if a hurricane knocks out refineries or an early freeze kills crops.
Focusing only on the core rate is fine for people who will be spending the holidays studying economic statistics.

But for Americans whose celebrations include a drive to grandma's house and a meal, inflation could have a big impact.

Gasoline is up 23 percent from last year. Christmas brunch may be an expensive treat too, given that bread is up 16 percent and coffee up nearly 10 percent. Better skip the orange juice; it's up almost 28 percent.

And all those jumps, as measured by the BLS in October, are mild compared with eggs.
The wholesale price of a dozen grade A eggs was $1.35 in mid-November, up from about 89 cents last year, according to the U.S. Department of Agriculture.

"I keep looking for things I can buy with my discount card" from Giant Food Inc., said Mary Beth Thomas, a Rockville, Md., resident shopping for groceries on her income as a second-year teacher.
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