Food Prices on the Rise

Food Prices on the Rise

Food & Drink

Food Prices on the Rise

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Are you walking out of the grocery store examining your sales receipt to see if there’s been some mistake? Does it seem like you’re paying a bit more every time you shop to put food on the table?

In fact, you are–at least according to an informal survey conducted by the American Farm Bureau Federation. American shoppers paid 4% more for a basket of 16 basic food items in May compared to what they paid in February, the survey indicated.

The total average cost of the 16 items was $ 51.17, up $2.10 from the previous survey, with the prices of sirloin tip roast, russet potatoes, sliced deli ham and bacon increasing the most. Only two of the 16 items had dropped in price: boneless chicken breasts and shredded cheese.

The American Farm Bureau poll was based on 72 shoppers in 30 states.

Chief among the factors for the uptick in your grocery bill: skyrocketing fuel prices that affect shipping and freight costs for food manufacturers.

Late last week the J.M. Smucker Co., maker of Smucker’s jams and jellies, Folgers coffee, and Hungry Jack pancake mix, said the company expects its cost of products sold to jump 25% over the next 12 months.

“Further retail price increases are likely to be the new normal as we move through 2011, especially for meats,” American Farm Bureau economist John Anderson said in a statement.

The American Farm Bureau is a nonprofit organization that politically promotes and lobbies for the interests of its member farmers, ranchers and agribusiness in the United States. It is headquartered in Washington, DC.

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