There is no doubt that consumers are seeing and paying higher food prices at the grocery store these days. The Wall Street Journal’s September 10 Market Watch says “Rising milk and beef prices help explain why many Americans think inflation is higher than official government statistics suggest. Americans go to the grocery store several times a week, and they are quick to take notice when the price of breakfast or dinner-table staples soar. The cost of food used to prepare meals at home, for instance, has climbed rapidly in 2014 to a 2.7% annual pace in July from just 0.5% in January.”
Looking specifically at fluid milk, Market Watch says “Supermarket whole milk rose in May to an average nationwide price of $3.74 a gallon to mark a five-and-a-half year high, according to the Bureau of Labor Statistics. The price slipped to $3.65 in July, but milk futures leaped to a record in early September. That signals potentially even higher prices in the next few months.”
By the way, the May Federal order Class I base milk price paid to dairy farmers was $2.10 per gallon and $1.98 per gallon in July.
To read the complete Market Watch article, log on to: blogs.marketwatch.com/capitolreport/2014/09/10/if-youve-got-a-beef-with-higher-milk-prices-heres-why
Source: DairyBusiness Update Daily
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