Inflation And Its Effects On Cereal And Bakery Products (Coursework Sample)

Name: Tutor’s Name: Course: Date: Inflation and its effects on cereal and bakery products The commodity this write up will look into is cereal and bakery products. This is because with cereal and bakery products, there a constant consumption of the product as cereal are consumed daily by most Americans. According to Bureau of Labor Statistics, the consumer price index shows the following trend from 2009 to 2013. In 2009 was $258.463, 2010 was $250.449, 2011 was $260.311, 2012 was $267.599 and 2013 was $271.647. This shows that in 2009, there was an initial price that stood at $258.463 then in 2010, there was a decline in the price as at $250.449. This was a period after the hard stricken inflation and prices were falling to show that the economy was slowly gaining stability at a reasonable pace. In 2011, the trend continued to increase as there was a $260.311change. The increase was up by 3.9% showing that there was an increase in the production cost. After a period of recession, this indicates that there is a period of increased prices that will slowly compensate for the loss at recession. In 2012, another increase was seen at, $267.599 and also was the case in 2012 where there was a $271.647 change. Linking this to inflation, it is evident that the increase in cereal and bakery products prices has an association with increased inflation. This is because, the cost of production has been affected by an increase in taxes from the gove...