MSNBC reports that food costs are continuing to rise. Rising gas prices are the main reason - they make it more expensive for food products to be delivered. Even pizza and beer prices are rising. Eventually restauranters have no choice but to pass these costs on to consumers. Small restaurants have a harder time than fast food chains because they can't spread the rising costs around as easily.
Pizza makers have seen their cheese costs soar this year from $1.30 a pound to $1.76 a pound. Even worse, the flour used to make the dough has gone from $3-$7 dollars a bushel to $25 a bushel in less than a year.
Beer makers have been forced to raise their prices because of the skyrocketing price of hops - one of the principle ingredients. The price of hops has gone from about $4 a pound in September to $40 a pound. The price of barley, beer’s other main ingredient, has nearly doubled.
Bagel shops have struggled to hold the line on prices and keep their customers. The exploding wheat prices have made the $1 bagel a fact of life in big cities such as New York. Donuts are averaging $1.50. And many shop owners fear a wheat shortage will drive prices even higher.
Even the lowly hot dog is getting more expensive. Gray's Papaya, a New York hot dog institution, will be jacking up the price for its $3.50 "Recession Special" - two hot dogs and a 14-ounce drink. Nicholas Gray, owner of the frankfurter chain, has yet to set the price increase, but he indicated it is coming soon.
Those gas prices are expected to soar this summer. So we can probably expend additional food price increases later this year.
