RFA: Despite Drop in Grain Prices, Inflation Continues to Rise Due to the Cost of Petroleum

GrainNet.com
Date Posted: August 15, 2008

With release of the July Consumer Price Index, it is painfully clear that as grain prices are falling, the major reason consumer budgets are being squeezed is because of the fact that energy prices have climbed more than 29% from a year ago while food prices have climbed 6% from a year ago.

But because farmers are buying higher priced fuel and fertilizer, and the average distance traveled by the food Americans eat is 1,500 miles, higher fuel prices are also contributing significantly to food inflation.

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