Packaged food companies are feeling the pinch as the rising price of raw ingredients is causing an increase in food prices.
Despite steadily declining food prices, costs of raw ingredients are higher than two years ago, increasing the cost of living worldwide.
ConAgra Foods and General Mills reported a hit in profits as the price of raw ingredients, packaging and fuel continue to rise. This has lead them to increase the cost of packaged food to offset the loss of profits.
Consumers are feeling the hit -- high unemployment and a reported 5.9 percent increase in grocery prices from a year ago make for a struggle.
- US food groups struggle with costs (Financial Times)
- ConAgra net income falls in 2nd quarter on higher costs, results beat Wall St. forecast (Washington Post)