Consumers will have to dust off creative cost-containing measures this year as food prices escalate after two years of very low inflation. The cost of food is expected to go up 2 percent to 3 percent, according to government economists. Some items, such as meats and dairy products, could see much steeper percentage increases — probably in double digits compared with late 2009.
To consumers, many of whom are still struggling financially, the increase could seem unbearable. Some foods have suddenly become more expensive, even as others have stayed the same or gotten a little cheaper.
A food basket survey by The Tennessean earlier this month found a 12.5 percent spike in prices for a typical grocery basket filled with staples compared with November 2009, when prices were at low ebb after world stock market turmoil.
Several factors are at work boosting today's food prices.
First, as the world's economy has started to recover, the demand for grains such as corn, wheat and soybeans has risen. Farmers are now exporting more grain internationally, while at the same time, demand in the United States has climbed, too.
Second, because there's more demand for grain, farmers who raise livestock — both for meat and dairy — are being forced to pay more to feed their herds.
And third, fuel prices are up, making it more expensive to deliver products.
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