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EconoMeter: Will rising food prices hurt recovery?


Sunday, March 13, 2011

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Kelly Cunningham, National University System
Answer: Yes
The respite of the federal government not raising personal income taxes at the beginning of the year is quickly being nullified by both rising gas and food prices. The higher costs essentially impinge whatever economic recovery could be taking hold.
Spending on food accounts for 11 percent of a typical household budget in San Diego, almost as much spent eating out as consumed at home. Food prices reportedly have been flat the past two years.
Households and visitors will doubtless absorb the higher costs by further cutting back spending and impacting San Diego’s restaurant, retail, and entertainment businesses.