Get Ready For Higher Food Prices

Prepare to clip some coupons, again. The cost of staple ingredients, such as milk, coffee, cocoa, sugar, and especially, beef, have increased sharply after a plateau of pricing over the last year. Fast-food chains, restaurants, and grocery stores have said they can’t absorb any more price hikes without passing the costs onto their customers. Companies such as Kraft Foods, Sara Lee, and General Mills have publicly said they will increase their prices. At the root of this increase is the price of meat to emerging countries like India and China. This drives up the cost of grain, which is already struggling from droughts in Russia and poor global agriculture.