Wednesday, July 6, 2011

Food prices continue to rise

MURRAY, KY (WKMS) - Kentucky Farm Bureau’s Marketbasket survey shows food costs at an all-time high for the 2nd quarter of 2011.

Each quarter the survey sends volunteers with a list of 40 grocery items around the state to collect price data. The aggregated data provides the average price of food during that quarter.

The new data shows a price increase of 2.2 percent over the same list of items reported in the first quarter of 2011.

Farm Bureau Director of Public Relations Dan Smaldone says that while the rise in costs is complex the price of energy is important.

“The higher prices for gasoline and energy are fueling higher food costs, unfortunately not the other way around. Food is not driving energy costs, energy is driving food costs,” Smaldone said.

Smaldone says in the four decades of this research this marks the highest costs of food that has ever been recorded in the state. USDA forecasts call for a continued rise in costs for the coming quarters.

Chad Lampe, KWMS


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