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Food prices add to debt worries
8/21/2008 6:11:06 PM
Bruce Parker

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A surge in food prices is likely to add to America's consumer debt problem, it has been suggested.

Research conducted by the Agriculture Department (USDA) concluded that the price of food could climb by between five per cent and six per cent in 2008.

America has not seen a rise at that level since 1990 and it comes at a time when consumers are having to deal with spiraling energy and gas prices.

USDA economist Ephraim Leibtag told Reuters that he was surprised by the latest figures, which followed last month's prediction that food inflation could be just 4.5 per cent this year.

He added that the expected moderation in prices had not materialized, which did not bode well for the rest of 2008.

USA Today recently reported that the surge in fuel prices had begun to have an adverse impact on the agricultural sector, with producers seeing profits fall despite food prices rising.ADNFCR-1683-ID-18744698-ADNFCR



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