Higher Gas Prices Pushing Food Prices Up As Well
BOSTON (CBS) - Food prices increased 3.3 percent locally in 2011, compared with just 1.1 percent the year before, according to the U.S. Bureau of Labor Statistics.
Overall, consumer prices increased 2.7 percent from 2010 to 2011 in the Boston area, that was a much higher gain over the previous year.
And that overall rise in consumer prices was driven in large part by energy costs, especially the rising cost of gas, which has gone up 20 percent since the start of this year.
Because oil is essential in the food processing industry, it's used for manufacturing, packaging and shipping food. Because of that, food and gas prices are tied together.
A study last year from the U.S. Department of Agriculture found that out each dollar Americans spend on food, 7 cents is tied to the cost of energy.
Lisa van der Pool of the Boston Business Journal can be seen weekdays at 6 a.m. on WBZ-TV.
You can follow Lisa on Twitter at @lvanderpool.
