Thursday, August 11, 2011

Higher Food Prices on Way

BY LESLIE JOSEPHS AND PAUL ZIOBRO

NEW YORK—American consumers can expect bigger grocery bills in 2012, even as commodity prices are forecast to fall.

The U.S. is expected to churn out more staples like corn, wheat and soy, which would drive commodity prices lower in 2012. However, it takes several months for a commodity such as corn to make its way down the production line and into a box of cereal, so consumers next year will be buying food made from raw materials bought this year, when crop prices reached multiyear highs.

Weather problems including frosts, floods and droughts have driven commodity prices this year. ...

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