Are you feeling the sting of rising grocery prices? In her latest op-ed, DeannaIsaacs delves into the economics of food costs and explores why staples like bread, milk, and eggs are becoming more expensive.
, it’s about a televised contest in which three young chefs face off over the same meal. The exotic dish they’ll be cooking? Mac and cheese—the mainstay of American tables during the Great Depression.
What’s up with that? I put the question to three people who know something about overcooked economies. Here’s what I learned:Craig Gundersen, who used to be downstate at U of I, now heads the Collaborative on Hunger and Poverty at Baylor University, where he’s a professor of economics. He says there are a couple of basic points to make. First, although there’s geographic variation, “overall, the U.S. has much less expensive food than other countries, especially other high-income countries.
These higher prices will be sticky, Dubé says: “Prices rise more quickly than they fall,” and a price-increase-because-of-inflation announcement can serve as a “tacit way to collude,” signaling rivals that they can also boost. In fairness, he adds, costsgoing up, and during the pandemic many states had antigouging laws in effect that kept a damper on prices. Still, this is “a very opportune moment.
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