Demand and bad weather is raising the costs for must-haves on food items.
Grocers Tout ‘Sales’ Even as Prices Climb – WSJ.com
With food costs soaring and the economy slowing, the nation’s supermarkets are touting their discounts even as they jack up the price of most items.
Consumers are being whipsawed by the powerful
marketing pitch of buy-one-get-one-free offers for nonessential items
at a time when they’re paying more for must-haves. The average price of
a dozen large eggs in February was $2.17, up 24% from the year before,
while a gallon of whole milk rose 26% to $3.87 compared with February
Rising demand for meat and dairy products in emerging
overseas markets, increased use of grains for alternative fuels, and
bad weather in some parts of the world have pushed up the price of
every commodity from corn to coffee. That, in turn, led to the biggest
jump in food prices in 17 years in 2007. In February, U.S. prices for
groceries continued higher, rising 5.1% from February 2007, according
to the Bureau of Labor Statistics.