In the past year, food prices have increased 3.7 percent and are on track to jump by as much as 7 percent by year's end. The current increase is more than double the 1.8 percent jump seen the year before, according to the consumer price index.Meanwhile, gas prices rose 2.9 percent. Only the cost of health care rose more, and then just slightly.While companies up and down the food chain see the increases, they're only beginning to pass them on to consumers. But with the start of grilling season -- meat prices particularly hurt -- some consumers are already tweaking their spending habits.A recent study shows that more consumers are using coupons. Marilyn Pearson just resorted to clipping them again, though she hasn't changed what she buys. On a recent evening, the St. Paul resident's shopping cart was filled with collard greens, meat and other supplies for a barbecue. She's noticed the price of meat, some vegetables and dairy going up, but figures, "You gotta eat, you gotta buy." While food prices are rising pretty much across the board, items related to corn are affected the most. That's because increasing demand for ethanol, made from corn, is driving up corn prices, which farmers use to feed their poultry and cattle. The high price of corn is also affecting prices of everything from cereal and other products with corn as an ingredient to the oils used to make potato chips. But corn is only one culprit. Higher labor, packaging and fuel costs all play a role. Bad weather in California and Florida was the main contributor to a 20 percent spike in citrus fruit prices as well as higher prices for some vegetables. A drought this summer could cause prices to rise even more than current projections.
In the past year, food prices have increased 3.7 percent and are on track to jump by as much as 7 percent by year's end. The current increase is more than double the 1.8 percent jump seen the year before, according to the consumer price index.
Meanwhile, gas prices rose 2.9 percent. Only the cost of health care rose more, and then just slightly.
While companies up and down the food chain see the increases, they're only beginning to pass them on to consumers. But with the start of grilling season -- meat prices particularly hurt -- some consumers are already tweaking their spending habits.
A recent study shows that more consumers are using coupons. Marilyn Pearson just resorted to clipping them again, though she hasn't changed what she buys. On a recent evening, the St. Paul resident's shopping cart was filled with collard greens, meat and other supplies for a barbecue. She's noticed the price of meat, some vegetables and dairy going up, but figures, "You gotta eat, you gotta buy."
While food prices are rising pretty much across the board, items related to corn are affected the most. That's because increasing demand for ethanol, made from corn, is driving up corn prices, which farmers use to feed their poultry and cattle. The high price of corn is also affecting prices of everything from cereal and other products with corn as an ingredient to the oils used to make potato chips.
But corn is only one culprit. Higher labor, packaging and fuel costs all play a role. Bad weather in California and Florida was the main contributor to a 20 percent spike in citrus fruit prices as well as higher prices for some vegetables. A drought this summer could cause prices to rise even more than current projections.
Supermarkets do not buy meat from farmers. Unless bought directly from a farm US meat comes from a confinement operation.