After the prices of wheat and eggs soared during the past year, supermarket shoppers now find they're spending an extra quarter for each pound of pasta. Four sticks of margarine cost an extra 60%. Even the cold glass at the frozen food section has become foreboding: Ice cream is up nearly 6%. But walk down other aisles, and the outlook doesn't seem as grim. Corn and wheat prices may have doubled in the past year, but somehow breakfast cereal prices have stayed relatively flat.Forgive shoppers if they feel like traders climbing into the pit at the Chicago Board of Trade. As prices for commodities such as wheat, corn, and eggs have climbed, there seems to be no telling how it will trickle down to the cost of individual grocery items. Items like pasta, made with wheat and eggs, have become much more expensive, yet soda, which is often made with corn syrup, has stayed relatively level.
Adding to the confusion, flooding in the Midwest will lead to a new round of price increases in the next year, experts say, though not necessarily in the areas consumers might expect. Corn and soybean fields were flooded, and their commodity prices jumped rapidly. But foods like bacon, ribs, and chicken will probably see the most dramatic price increases.
Head-Scratching at the Grocery
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