Last week, we highlighted that the rising prices of commodities during 2008 was costing the average American an extra $1.77 per day this year, which was down sharply from the $4.77 we saw in early July when oil and most grains were peaking.
In the chart below we calculated the '08 price change of the major food and energy commodities in the CRB index (Corn, Soy, Wheat, Cattle, Hogs, Oil and Natural Gas) and multiplied the changes by the annual per capita consumption of each item. While this method may oversimplify the actual costs, it provides a good idea of how changes in commodity prices have impacted consumers' wallets.
As shown, this week we have seen the daily increase in food and energy prices in '08 decline to $1.37, which is now at a four-month low. A decline from $4.77 to $1.37 per day in a little more than a month is huge for consumers.
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