Morningstar Analyst - All Food Up 4%, Milk Up 10%, Eggs Up 30%, Thanks To Corn/Biofuels Effects

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With the cost of staples such as eggs (up nearly 30 percent in the past year), milk and bread escalating, some consumers say they are adjusting their spending habits.

Susan McCranie said she can no longer afford to splurge on ice cream and other types of "junk food" to stay within her biweekly $125 grocery budget for two. The Winter Garden resident said she has become more of bargain hunter, scanning grocers' circulars for two-for-one specials and other deals. "You have to watch your pennies," said McCranie, 61, after a shopping trip at a Publix on South Orange Avenue in Orlando.

So what's causing the jumping prices? Corn. Ethanol producers have driven up demand for the grain, which is used to make ethanol blends. That has caused the cost of a bushel of corn to nearly double since spring of last year.

That price jump has led to rising costs for other foods and meats, because corn is an essential part of the U.S. food-supply chain. Farmers use the grain to feed dairy cattle, poultry and other livestock.

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On edit: Sorry! Totally forgot the link!

http://www.orlandosentinel.com/business/orl-foodprice1407jul14,0,7778150.story