Shoppers should brace for higher grocery bills, especially on basics such as milk and ground beef, as food prices are expected to rise this year.
Food inflation is expected to accelerate this year to as much as 3 percent after two years of more moderate or declining prices, according to the U.S. Department of Agriculture. Some economists are warning of even higher inflation given the volatile food market. That could add more than $20 to the average monthly food bill for a family of four.
Some Baltimore-area grocery stores already have begun to raise prices and cut back on sales. Giant Food, the region's largest grocer, hit customers the hardest with a 4.5 percent increase in prices since October, according to a Morgan Stanley survey that included Baltimore-area grocers. Food Lion raised prices by 4.2 percent in that time, while Walmart held the line with a 0.1 percent increase.
Richard Kowalewski, owner of Fellner Meats, a retail butcher shop in Northeast Market near Johns Hopkins Hospital in Baltimore, said he had to raise prices of most items by 20 percent in recent weeks. He said customers have complained, but there is little he can do.
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