Tough Times on the Food Market:
Ace Endico's Economic Report Q1 2008

The current state of our economy has also affected the price of food, as surging energy costs have driven up the price of transporting goods. The cost of ethanol has also had its effect on food prices as the cost of corn -- the largest and most important agricultural commodity -- has been driven up. Surging wheat and cheese prices have forced the pizza industry to push the costs to the consumer, which has resulted in higher prices for a simple slice.

Pizza makers have seen their cheese costs soar this year from $1.30 a pound to $1.76 a pound. Even worse, the flour used to make the dough has gone from $3-$7 dollars a bushel to $25 a bushel in less than a year.

Bagel shops have struggled to hold the line on prices and keep their customers. The exploding wheat prices have made the $1 bagel a fact of life in big cities such as New York. Donuts are averaging $1.50. And many shop owners fear a wheat shortage will drive prices even higher.

Even the hot dog is getting more expensive. Gray’s Papaya, a New York hot dog institution, will be jacking up the price for its $3.50 “Recession Special” – two hot dogs and a 14-ounce drink. Nicholas Gray, owner of the frankfurter chain, has yet to set the price increase, but he indicated it is coming soon.