Food price inflation

It is visibly evident, especially going through the supermarkets, that food prices have been heading up. In light of the fact that commodity prices (e.g. grain, sugar, etc.) have been rising, there is no way that producers can sell the same products and maintain margins without increasing prices.

Reducing the size of packaging has been one approach some companies have been taking – seen with such products such as breakfast cereals, to name one.

This is a function of loose monetary policy and demand for goods – the net result is that everybody is going to have more money, but the purchasing power of that money will be less. It will be nearly impossible for the average member of the public to maintain their purchasing power – you are forced to make a financial decision of some form to maintain it.