By Rene Pastor, Reuters
WASHINGTON — Americans who dug deeper into their pockets for groceries last year will face sticker shock again this year when shopping for food, experts said Thursday.
Consumer food prices are expected to rise 3.0% to 4.0% this year after a 4.0% gain in 2007, said USDA Chief Economist Joseph Glauber at the U.S. Agriculture Department’s annual outlook conference.
He added that “overall retail food prices for 2008 to 2010 are expected to rise faster than the general inflation rate.”
“There’s going to be real food inflation in this country,” said C. Larry Pope, president and chief executive of U.S. beef processor Smithfield Foods (SFD).
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So my big question is with all the Obama – and even John McCain fans – this is all about, among other things, attempting to use up grains to create ineffective bio-fuels. The other part is that our farm industries are so subsidized that I heard somewhere that this is the first year we are actually going to have to import wheat for consumption. So add to this the massive tax increases that an Obama presidency would cause and you will see something that will make the Carter years look like paradise.