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Federal Register
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Food Prices in Perspective
Abstract: A USDA report summarizes the causes of food price inflation. Retail food prices in the United States rose over90% annually from 1973 to 1979. Increases in prices result from higher farm-level commodity prices and higher marketingcosts. Food production costs, trade policies, food marketing costs, and structural changes are controllable in varying degrees. Control of fluctuations due to weather and the biological nature of food production processes is unlikely. Consumers are partially responsible for food priceincreases through rising incomes and changing lifestyles. Reduction of the upward movement in food prices will requirea long-term effort. The Government, food industry, and consumers can slow price increases by 1) supporting programsto reduce inflation rate; 2) encouraging price competition; 3) encouraging consumer nutrition education; 4) stabilizing trade flows; 5) reviewing regulations; 6) eliminating labor practices and policies that limit savings; 7) encouraging new technology, especially packaging, adoption.
