What is Causing High Food Prices?

We’re all seeing the price of food going up quickly. What steps can we take to mitigate some of these effects?

Reader Contribution by Sue Van Slooten
Published on February 28, 2022
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by Sue Van Slooten
The cost of basics is rising.

We all have seen the extra bite taken out of our wallets due to the increasing price of food, among other things we all rely on.  A number of issues, consider it the perfect storm of economics, have come together at the same time to contribute to a very worrisome trend.  Consider the following: Inflation, supply chain issues, illness, international politics, corporate greed, uneven playing fields, and bad weather, among many other reasons. Let’s start by looking a little bit at each of these.

A few things to keep in mind:  All things are fluid, nothing stays static. Some issues are beyond anyone’s control, whether we like it or not. Good old fashioned chaos. This all adds up to a sense of uneasiness. And when you mention food, all bets are off the table, as everyone needs it.  Along with a roof over your head, medicines, education, a whole panoply of things that are considered human rights. In this first installment, we will look at some of the reasons food prices are rising. Sit down, take a deep breath, and hang on for a wild ride.

Inflation

There is no doubt inflation is real, and whether or not it will be with us for a short term or something longer, we have no way of knowing.  Inflation can be insidious. It’s nasty. It’s sneaky. I am old enough to remember the horrendous inflation of the 70s, and  let us say, it was no fun. I am not an economist, but it did seem that after a while, inflation calmed. Price caps were little more than a political ploy at the time, but we welcomed them, because we thought they would help us out. Opinions differ whether they did or not.

We’re currently running about 7 or 8% or so, and that’s not good, but it isn’t terrible. There are other places in the world where inflation is 70, 80, even 200 or 300% right now, often associated with failed states. Perspective is important.

Having said that, however, the fact that inflation has ticked upward quickly in the last few months does not mean it is nothing to worry about. It is, bears watching, and calls for taking some countermeasures so it does not get out of control. All we can control is our reaction to it. Becoming stressed or panicking will not help. Let us come together to figure a way to cope.

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