Report: Food Prices Already Starting To Skyrocket

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Aug 10, 2010, 9:34:39 PM8/10/10

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Report: Food Prices Already Starting To Skyrocket
Experts warn that overall food-price inflation is inevitable, as Wal-Mart reportedly has already hiked prices amid a recent jump in wheat prices and the failure of the Russian harvest. The most immediate impact will be felt in the price of bread and bakery products but other food items which make use of grain will also rise, according to analysis from Verdict research. This includes some meat products where grain is used as animal feed. Meanwhile, a recent JPMorgan survey of supermarket pricing in Virginia showed a 5.8 percent increase in average prices at Wal-Mart, which represents the most significant sequential increase since the inception of the study in January 2009, the Business Insider reported. The survey compared a 31 item like-kind basket at a Wal-Mart Supercenter, Kroger, Safeway, Harris Teeter, and Whole Foods, the Business Insider reported. Should wheat prices remain elevated for the next few months, shelf prices for many products could go up by 6.7 percent within a year, Verdict reported. Some items, such as croissants, could go up by as much as 11.1 percent. While the failure of the Russian wheat harvest has caused a temporary spike in prices, these high prices won't last for long because of excess production in China and the United States. But global fundamentals are supportive of a long-term rise in the price of food, The U.K.'s Telegraph reported.