Jan 18, 2008 7:11 pm US/Eastern
Food Prices Soar At Grocery Stores
BOSTON (WBZ) ―
With prices at the grocery stores soaring over last year, many customers are feeling the pinch at the cash register.
Allison Achtmeyer shops a few times a week at Deluca's Market in Boston. She said she has noticed an increase in food prices.
"I think you're going to pay whatever you have to pay," she said.
A trip to the market confirms what federal numbers have been showing. Food prices are way up. Over the past 12 months, milk prices are up 19.3 percent, bread is up 10.5 percent, beef is up 5 percent and eggs are up 32.6 percent.
So what does all this mean in real terms? One year ago it costed $5.68 to buy three common grocery items -- milk, bread and eggs. Today it costs $7.25.
That can really add up for the average family.
Boston University professor Ronald Curhan says three factors are to blame. The high price of oil, ethanol production, which is greatly reducing the corn supply, and weather.
Curhan blames oil as the biggest culprit.
"I think the price of oil is the most immediate impact on all of this," he said.
Deluca's owner, Virgil Aiello, says he pays twice.
"One in the cost of the item itself, and also in direct cost to us," Aiello said. "Because some of suppliers actually place a surcharge on the invoice to pay for the gas."
Aiello said he tries to buy from local suppliers to cut down on transportation costs, but he says, "If you want California strawberries you can only get them from California."
Curhan says don't expect things to change anytime soon. He believes prices will stay high through 2008.
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