Rise in Staple Prices Outpacing Luxury Goods

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http://www.democracynow.org/2008/3/21/headlines#1

 

Rise in Staple Prices Outpacing Luxury Goods

A new analysis shows inflation has led to a greater increase in prices

of staples needed for basic daily life than it has on luxury goods.

According to the Washington Post, prices for basics including

groceries, gasoline, and health care have risen more than nine percent

over two years ago. By contrast, prices for luxuries including

restaurant meals, alcoholic beverages, new cars, furniture, and

clothing have risen just two point four percent. Meanwhile increases in

earnings for non-managerial workers were just over half the increase in

staple costs, at five percent. The rise in staple prices is attributed

to increasing demand for oil but also ethanol—which drives up food

prices by making food crops more scarce.