Coffee drinkers and carnivores hard hit in food price hikes

Consumers around the world are being warned this week to brace themselves - and their wallets - for price hikes on everything from coffee to restaurant bills.

Coffee drinkers will take a big hit in the coming months, for example, as Starbucks, Dunkin' Donuts and Folgers announced steep price hikes.

Starbucks, for instance, said that the price for a bag of packaged coffee will increase by 17 percent in the US, and 6 percent in Canada.

The J.M. Smucker Company, which distributes Dunkin' Donuts and Folgers packaged coffees, also announced Tuesday an 11 percent price hike across the US. The increase applies to coffee products sold in retail stores and not in Dunkin' Donuts restaurants.

The global price hikes are being blamed on speculators and coffee futures, inclement weather in coffee-growing countries like Indonesia, and rising demand in China.

Meanwhile, the US Department of Agriculture projects that in 2011, grocery store prices are forecast to increase 3.5 to 4.5 percent, while restaurant prices are forecast to increase 3 to 4 percent.

The overall price hikes are being blamed on higher commodity and energy costs and strengthening global food demand.

Beef and pork prices experienced the highest rise last month, jumping 10.4 percent above prices from the same period in 2010.

Similarly, eggs are almost 5 percent higher than last April and dairy prices are up 6.3 percent.

Meanwhile, a consumer group in France also found that deceptive markdowns disguised a flurry of price hikes on foodstuff items like flour, fruit juice, dairy products, bacon and frozen and tinned fish.

A story in their publication 60millions-mag.com found that between November of last year and April, prices on 92 items in French grocery stores increased by three to 20 percent.

To avoid being duped by misleading sales claims, the magazine advises checking the price of goods per kilo or pound.

From: The Independent.co.uk