For the first time since January, we have reached the point where the year to date change in commodity prices should have a positive effect on the average American's wallet. In the chart below we calculated the 2008 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 this year.
After peaking at an additional cost of $4.77 per person per day, year to date changes in commodity prices are now impacting the average American by acting as a net benefit of 2 cents per person per day. While a 2 cent benefit is negligible, it sure beats paying an extra $4.77 per person per day.
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