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Higher grocery prices attributed to rising cost of corn, plastic

High grocery prices have apparently hit Americans right where it hurts - in the stomach.

According to data released by the Consumer Price Index, “Grocery store food prices increased 5.6 percent in 2007, reflecting acceleration over the last year in each of the six major groups.”

The 2007 increase is larger than the last two years combined - 2.2 percent and 2.3 percent - and higher than every year included in the Bureau of Labor Statistics report released this week, which goes back to 2000.

Breakfast lovers were hit hard by a one-two combination of high milk prices, up 19.3 percent, and cereal and bakery products, up 5.4 percent.

Other increases include: cheese up 13 percent; fruit and vegetables up 5.9 percent; meat, poultry, fish and eggs advanced 5.4 percent.

Salado Brookshire Brothers store manager Rick Strong said high fuel cost is the main factor behind the spike in grocery prices. He said both the increased cost of transportation, and the fact that many packaging products are made from petroleum, are pushing up grocery prices.

“Things cost more, plastic bags, milk jugs, everything that is plastic in the store is going up,” Strong said.

But that’s not all. Strong also attributes increased corn costs for higher grocery bills.

“Think about all the things corn affects - cooking oil, milk, chicken, beef, pork,” Strong said, pointing out meat producers use corn to feed their stock.

H-E-B director of public affairs Leslie Lockett said the independently-owned Texas grocer was doing what it could to keep prices low.

“Though the pricing of some commodities may fluctuate due to weather and industry events, we work hard every day to innovate and drive down costs for our customers,” Ms. Lockett said.

Wednesday afternoon, grocery shoppers in Temple, Belton and Salado all said they were lately paying more for groceries.

Illie Griffin of Troy rolled a steel cart loaded with several plastic bags of groceries across the Temple H-E-B parking lot on Adams Avenue. The health care provider, and mother of seven, said high gas and grocery prices combined to make the future uncertain.

“With gas prices going up, sometimes you don’t know what you’re going to do,” Ms. Griffin said. “You have to buy what you can, take it one day at a time.”

Monday: Grocery prices and farmers profits seem to be headed in opposite directions.

fafflerbach@temple-telegram.com

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