I watched a friend making bread one day. She had a grain mill, ground wheat berries, and used the flour to make her dough as soon as it was ground. I have never seen such life in bread dough! I believe there are enzymes which last only a short time after grinding, which are responsible.
The fat in flour will oxidize causing bad taste in simple pastries. Also, it is not widely known, but there are small eggs in all flour, and if your flour is in a warm place for long enough they will hatch and you will find little weevils crawling around your flour. I know this sounds crazy, but a quick Google search will corroborate this. If you want flour to last longer store it in the freezer or a least a temperature stable, dark place.
Yes. Especially if whole grain. If whole grain it is not fresh it will taste stale and even rancid. White flour will last longer but taste it and you will know if you want to use it.
Flour looses moisture as it ages -- this is why sometimes you need more or less flour when mixing a bread dough. Unless the flour is years and years old though, I wouldn't worry about it too much!
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