More Signs of Failing U.S. Economy -- Get Ready for Higher Food Prices

Price increases are beginning to hit America's supermarkets and restaurants. Foods such as milk, beef, coffee, cocoa and sugar have all experienced sharp increases in cost in recent months. Meanwhile, food makers and retailers are planning to make their customers take on more of the higher costs for ingredients.

Kraft Foods, Sara Lee, and General Mills have all said they'll raise prices on certain items. Cereal maker Kellogg recently hinted the same, while grocery chains Safeway and Kroger plan to pass supplier increases along to consumers.

According to the Wall Street Journal:

“Costs are being driven by growing demand for meat in China, India and other emerging markets. That's driven up grain prices, which in turn boost the cost of chicken, steak, bread and pasta. Grain prices also have been nudged higher by drought in Russia, planting problems around the world and speculative trading.”

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