Experts say high food prices are here to stay. Here’s why
“Once food price goes up, it tends to stay up,” said Claudia Sahm, a chief economist at New Century Advisors. “The inflation may come back down, so you don’t see the big price increases. But outside of widespread depression, we don’t tend to see prices falling across the board.”
Sahm exaggerates because she knows there is almost no likelihood of real food price declines coming, but it wouldn't take a depression.
The last time we had actual food price deflation, on a sustained basis, was in the 1950s, with 1959 being the last time at -1.6%.
But yes, the biggest declines come during depressions, which are hardly desirable for the overall damage they do.
In 1921 this index hit -24%; in 1931 -17.5% and 1932 -16.8%.
But what good are low prices when you don't have a job? You'll still have to make those lard and dandelion sandwiches to get by because bologna will still be too expensive.
