By now, you may have noticed that something doesn’t look quite right on your grocery shelves. Could it be that bag of chips, or maybe that roll of toilet paper, seems to have shrunk? Let me assure you it is not your eyes; we have all come down with a bad case of shrinkflation. Shrinkflation is an actual term, according to Wikipedia, which means “a rise in the general price level of goods per unit of weight or volume, brought about by a reduction in the weight or size of the item sold.” I must admit that, until recently, the…
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Tag: high food prices
The vicious cycle between energy and food prices
Rising prices at the gas pump, combined with soaring shopping bills at the supermarket, are having a noticeable impact on the consumer’s pocketbook. But what’s worse is that higher prices in oil beget higher prices in food in the future. Here’s why. Historical economic studies tell us that energy prices have a significant impact on food prices, with 64.17% of changes in food prices explained by the movement of oil prices. But that only tells half the story. As energy prices climb, inputs to farm production are also impacted. Fertilizers, for example, account for between 33% to 44 % of…