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Food prices about to get even higher
ASSOCIATED PRESS
Photo
Kevin Gomes shops in the produce area at Pacifica Farmers Market in Pacifica, Calif, Wednesday, March 16, 2011. Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. (AP Photo)
Associated Press
WASHINGTON
Americans are noticing higher prices at the grocery store, and it’s about to get worse.
Food prices at the wholesale level rose last month by the most in 36 years. Cold weather accounted for most of it, forcing stores and restaurants to pay more for green peppers, lettuce and other vegetables, but meat and dairy prices surged, too.
The big questions are how long food prices will keep rising and how high they’ll go.
The impact already is visible. Wendy’s, paying higher prices for tomatoes, now puts them on hamburgers only by request. Starbucks and Dunkin’ Donuts have raised prices because they pay more for coffee beans. Supermarkets warn customers that produce may be of lower quality or limited.
Food prices rose 3.9 percent last month, the most since November 1974.
More-expensive food means people have less money for the casual spending that helps the economy grow and create jobs.