The Rising Cost of Breakfast

March 31, 2008 12:00:00 AM PDT
At breakfast time, you might be forced to fork over more dough. The cost of the most important meal of the day has drastically gone up.Bread is up 11% percent since last year. Coffee's up 16% percent, eggs 19% percent, and milk is up by 20% percent.

The cost of food is going up faster than it has in nearly 20 years and each expensive item is making the next one more costly in sort of a vicious breakfast-price cycle. "Corn, wheat, soybean that is what's used to feed cattle, hogs. Obviously it pushes higher prices through the entire system," said Mike Santoli with Barron's Financial Magazine.

Wheat prices are up because some farmers planted corn instead. It's more profitable to produce corn since it's used to make ethanol, an alternative to gas.

Record oil prices also mean it's more expensive to truck the food to the grocery store. Economists say they can't predict when or how the cycle will end.


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