Higher grocery prices to bite Thanksgiving: survey
By Lisa Baertlein
LOS ANGELES (Reuters Life!) - Higher prices for supermarket staples like meat, vegetables, butter, eggs, milk and bread threaten to take a bite out of this year's Thanksgiving dinner plans, a survey showed on Thursday.
Almost 70 percent of U.S. shoppers have seen grocery prices rise in the past few weeks, according to an online survey of 637 people conducted for Reuters by SupermarketGuru.com, a website that spots trends and helps shoppers make informed food decisions.
Those higher prices have one-in-four respondents planning major changes to their Thanksgiving dinners. Almost 20 percent said they would prepare less food, while 15 percent said they intended to eat the traditional turkey dinner at a friend's or family member's house.
"It appears that many shoppers already have noted 'sticker shock' in the supermarket aisles," said Phil Lempert, SupermarketGuru.com's editor. He expects grocery prices to keep rising at least through Spring 2011.
Costs for U.S. food staples are rising after tumbling during the financial downturn. Still, supermarket operators have been reporting weak to nonexistent inflation.
That's partly because packaged food makers have been reluctant to pass their higher costs to a public scarred by job losses and reduced home and investment wealth.
Those trends were reflected in the survey results. Respondents most often reported seeing higher prices for items like beef, vegetables, butter, eggs, chicken, milk, bread, coffee, cheese, fruit and bacon.
Eighty-five percent said they were buying sale items to compensate for the higher food prices. Continued...