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April 4th, 2008

Comment: Where do you cut when food bills rise?

Posted by: Reuters Staff

The Food and Agriculture Organization of the United Nations indexAmericans 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)