Think it's expensive in Canada now? Food prices to grow 3 to 4 per cent in 2013 as a result of U.S. drought

Unlike the old adage "what goes up must come down",  in economics when prices go up, they don't usually come back down. At least not permanently. While food prices will go up, salaries are not likely to keep up. 

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Food prices to grow 3 to 4 per cent in 2013 as a result of U.S. drought

• Food prices to grow 3 to 4 per cent in 2013 as a result of U.S. drought
• Extreme drought conditions in several U.S. Midwest states are causing corn and soybean crops to wither, and analysts say the effects will ripple through the food chain.
• Because corn is used to feed livestock in the U.S., the rising cost of beef and pork will be most noticeable on grocery store shelves, said Patricia Mohr, a commodity markets specialist at Scotiabank (TSX:BNS). Poultry may also be affected.
• Tim Hortons raised the price of certain baked goods and lunch items last week, citing higher operating costs and pricier ingredients. The coffee and doughnut chain said the price of a muffin is five cents higher, while sandwiches have gone up by about 10 cents.

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