The Oklahoman reports food prices are on the rise in every department of your grocery store, but the biggest spike is seen in butter, cheese and milk products.
The higher prices for dairy goods aren’t benefitting farmers. The price farmers receive for milk is higher than last year, but feed costs for their cows have nearly doubled in that time, soaking up any extra profit they would receive.
In addition to higher feed costs, more expensive gasoline has added to the final price for the consumer. According to Consumer Price Index, a gallon of whole milk cost 39 cents more than this time last year and is expected to increase again in June.
The price for cheese and butter are also higher. A pound of butter costs 35 percent more at almost a dollar more than last April. While dairy prices are drastically higher, the USDA says average inflation rate for other food products is expected to be 3 percent to 4 percent in 2011.
The USDA forecast inflation rates for dairy and meat products to be 5 percent to 6 percent in 2011.
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Source: The Oklahoman