Americans spend 10 percent of their disposable income on food, including restaurant meals and snacks, according to U.S. Dept. of Agriculture figures.
That reliable needle may start to shift as food prices rise. Globally, food prices have jumped 75 percent since 2000, the World Bank calculates. Look at the graphic on the left for another view; the U.N.’s Food and Agricultural Organization figures food prices spiked 23 percent in 2007. See full data here and note the surge in diary prices. The rising costs are affecting trade and subsidies polices and sparking unrest in parts of the world. (More in the Reuters special report on Agflation)
For some Americans, the rising food prices has meant a pullback on spending on clothes, jewelry or home furnishings, retail reporter Nicole Maestri details today, noting that Wal-Mart’s grocery business and its emphasis on low prices is spurring a resurgence at its U.S. stores and in its stock price.
Have rising food prices changed your shopping list? What are you pulling back on?
(Image credit: FAO)
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8 comments so far
I cut back as much as I can, use coupons and I had to stop stocking up on the things that were on sale. Gas is so high out here and the closes Wal-Mart is 60 miles r/t….I also take a friend who needs to do their shopping too I no longer go alone…..I would much rather grow my own but my stupit partner would just start in on the how cat poo make good fertlizer the chickens stink bla bla bla…..And how they wouldn’t eat what I grow. I know I should dump their sorry butt…..But then I would have no one to help me that I could afford, I am disabled.
- Posted by Insain1Most Americans willingly spend substantial sums monthy for cell phones, cable TV, computer service, music, videos etc., yet expect low-cost, high quality food as an entitlement. Meanwhile, rural America has endured decades of less than genteel poverty while subprime finaciers and corporate executives with failed ideas reap vast fortunes. Rising food prices and stronger rural economies are positive signs that this Age ruled by the perverse values of our merchant class is drawing to an end. Higher prices may even address our #1 dietary problem: obesity, common even among the poor.
- Posted by gbreite, Baton Rouge LAI agree with gbreite - people need to change their priorities. I’m not worrying too much about food prices, other than not buying name brand breakfast cereal. But I pay only $19 for the most basic cable TV, whereas some people pay $80 for digital cable, then complain that food costs too much. Also, people buy crap they don’t need - the article mentioned a cart filled with soda, among other things. Quitting smoking would help, too! Inflation has been higher than normal, but it doesn’t add up when one woman says her food bill more than doubled. Prices haven’t risen THAT much!
- Posted by CathyAddressing the person who wrote that high prices will address obesity is WRONG. The “poor” eat a lot of carbs, such as rice,pasta,potatos & beans.
- Posted by GlendaI have cut down on expensive groceries too, and have gained weight.I cut my cell phone off,I have only basic television,buy clothes at thrift stores,and most importantly,I have had to cut back on my meds,by taking them every other day,instead of daily.
I have managed to keep the house at a fixed rate,P.I.T.I. Our entertainment is now, board games,or books,bought used. I think most people will become more creative,the way our grandparents did during the 1st depression.
We Americans indulge in far too much needless spending on food. I am a recent college grad making a less-than-entry level salary while I earn a second degree, and my wife and I get by quite well. We don’t take trips or buy things we don’t need very often, but by cooking for ourselves and never buying prepared foods, we get alot of food for very reasonable prices. Butchering your own large pieces of meat can save as much as $3-$5 per pound. Cooking meals from scratch saves a lot too. As a country we are dependent so much on convenience that when we can no longer afford conveniences and luxuries we think the sky is falling. A bit of paring back on spending across the board would be good for most people (I work in finance and talk to people about their finances every day). There’s a reason we have a negative savings rate in the States, and it isn’t expensive gas or rising corn and wheat prices.
- Posted by Da6dAddressing the obesity issue I think they are referring to cutting back on crap like soda,juices,cookies and anything else with the main culprit of obesity high fructose cornsyrup.
- Posted by jaredQuit eating processed food and fast food(products with high fructose corn syrup in particular). That’s what is making people fat. Grow what you can, and go to farmers’ markets. Eat less meat and learn how to make less expensive cuts tasty. Put some of the energy that we give to watching TV into our diets instead of watching Oprah yoyo between fat and skinny.
- Posted by BKI am a lunch director at a school serving approximately 250-275 a day and we are going under. We usually don’t have to raise prices very much, but this year I am going to have to raise them at least 28%. Parents are not going to like it, but there is no way around it. It’s astounding the ripple effect on everything.Plus, I don’t have a choice on serving sizes. The Bureau of Food & Nutrition mandates everything I serve. I wish I could cut back on some things, but when it comes to institutional nutrition, my hands are tied. Therefore, in order to save some money, I have had to cut back employee hours as well as my own. It doesn’t help anyone out at home, but the kids come first.
- Posted by Lunchlady