H McKee Stewart Jr

Musings on Business, Finance, and Economcs.

Food and Diesel Prices

leave a comment »

There’s been a lot of talk lately about increases in food prices. As the USDA notes, Beef prices are up 10.4% year over year in April, Dairy 6.3%, and fresh vegetables 4.5%. Fresh fruit is reasonably stable,  only showing a 1.6% Y/Y increase. Given the weather impacts, diversion of corn from a food stock to a fuel stock, and increasing demand, prices are going to go up.

But there’s an additional factor at work, the price of diesel fuel. Increased energy costs impact more than how much it costs  you to fill your tank to get to work. Given that just about every item sold in your grocery is moved by truck at some point, this 53 week trend line on the price of diesel should be disconcerting:


Of course it’s worse if you’re in California or in New England:


Now, a lot of this trend in fuel prices can also be attributed to increased demand, uncertainty surrounding the political environment in the middle east, the BP disaster and subsequent ‘permitorium‘, the overall long term trend in fuel prices is impacted by environmental concerns – the government seems much more focused on ruling out exploration and drilling than encouraging it.

Update: Here’s the DOE source for the diesel prices.


Written by hmstewartjr

25 May 2011 at 2:13 PM

Posted in Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: