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http://tinyurl.com/52rnl2Pork, chicken prices may rise in next wave of food inflation
By ELLEN SIMON – 1 day ago
Americans may be getting another helping of food inflation, and it seems likely to come from higher prices for chicken and pork. Overall food inflation could double this year, lifted by the rising costs of fuel, corn and soybeans, some analysts predict. Food inflation hit 4 percent last year, up from 2.4 percent in 2006. While beef prices were already high, chicken and pork prices didn't reflect record costs for feed and fuel. That's poised to change as chicken and pig producers who have been losing money slaughter more animals to decrease the supply and raise the prices they can charge.
Higher food inflation would further challenge shoppers who are already limiting themselves to sale items and store brands as they contend with the worst food inflation since 1990. Mary Lee Rydzewski, a retired Amtrak engine dispatcher who lives in Cheshire, Conn., says she has already switched to store brands and sale items because of higher food prices. If they increase more, she plans to cut back again.
But Karen Leedahl, a pastor who lives in Latrobe, Penn., said she always bought store brands and shopped for sale goods. Two weeks ago, she started walking more than a mile round-trip to the grocery store instead of driving. If prices increase more, "I'm kind of in trouble," she said. "I was already trying to save."
U.S. shoppers spent 5.8 percent of their income on food in 2006, according to the U.S. Department of Agriculture — a lower proportion than any other nation. In the United Kingdom, consumers spent 8.7 percent of their income on food, and in most of the world it's at least 10 percent.
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