It’s clear the food price bubble has reached crisis levels. But why hasn’t it reached America? For one, Americans and residents of other industrialized nations consume higher proportions of processed foods — Doritos, hot dogs, and the like. A large part of the price of these foods comes from labor, packaging, and marketing, making them less sensitive to changes in food costs. Food prices for raw goods (like wheat) fluctuate wildly, while prices for processed goods (like breakfast cereal) are far less volatile. But the honeymoon might soon be over. Cereal maker Kellogg expects the price tag on a box of Wheaties to keep increasing this year.
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