Question

High pricing food and drinks

Answer 1

Food prices have skyrocketed over the past couple years. While overall U.S. food prices rose about 5% last year, earlier in the year food inflation was the highest recorded in 36 years. The USDA sees food prices rising 2.5%-3.5% in 2012 but many believe that inflation could be much higher. This is concerning since the economy is not rocketing and interest rates are near zero. Why are food prices so high?

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