Have you noticed that the prices of many items have increased at the grocery store? I have noticed a slow uptick in our food bill over the past few months. And the prices are not expected to come down for awhile.
In fact, economists are predicting increasing grocery bills for households across the country this year. As a result of strange weather patterns and increased demand from China last year, a number of commodity prices (including wheat, corn, soybeans, oil, and others) have increased, and retailers have started to pass those increased costs along to the consumers. (Source: http://www.courant.com/aan-4b.01-14-11.mid.inflation-20110114,0,7874425.story)
Unfortunately, the cost of making my cane sugar free chocolate chip cookies (see March 31 post for recipe) is more expensive this year relative to last. However, I can argue that the taste of freshly baked cookies holds an infinite value, so I will just have to continue spending more on the flour so I can enjoy them!
For more information about commodity prices, see the New York Federal Reserve’s blog at http://libertystreeteconomics.newyorkfed.org/2011/03/how-much-will-the-rise-in-commodity-prices-reduce-discretionary-income.html
For an overview of commodities, see Investor Weekly at http://www.investorguide.com/igu-article-1139-what-is-a-limited-partnership-lp.html
SensitiveEconomist 