As food prices are expected to increase again this year, consumers should prepare for higher priced groceries. Basic goods such as milk are expected to get a little more expensive than what they are currently.
U.S. Department of Agriculture has stated that food inflation may well increase to as high as 3 percent, this, following 2 years of moderate inflation to a point where food prices decreased. To a family of four, this increase in food prices could add around $20 more to an average grocery bill.
Several grocery stores have already increased their prices. According to a survey conducted by Morgan Stanley, Giant Food has increased its prices by 4.5 percent in October. Food Lion has also raised their prices by 4.2 percent and Wal-Mart raised their prices by 0.1 percent. The United Nations Food and Agriculture Organization has stated that world inflation rose to its highest level in January since it started keeping records in 1990.
By operating more competently and by cost cutting, grocery owners have been able to protect its customers from the impact of food inflation. However, grocery owners also stressed that they can’t keep cutting costs or maintain their prices indefinitely, as this would also mean very low profits for them.
Fellner Meats owner, Richard Kowalewski, had to increase the prices of most of his goods and has received complaints because of it. He said he understands the complaints, but stresses that he can do little about it. He also said that in order to keep his business running, price increases have to be made.