Las Vegas NowFrom Groceries to Gas, Prices Soar

From Groceries to Gas, Prices Soar

One of the biggest issues today is the sluggish economy. It's not just the glum housing market or rising gas prices that people are concerned about, it's also the high cost of groceries, including the staples like milk, break and eggs. Families are having a tough time putting food on the table.

All you have to do is stroll down the aisles of any grocery store to see the difference in price. Basic items like eggs cost 25-percent more than they did last year. The same goes for milk, which is up 19-percent. Bananas are up 17-percent.

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According to a CBS News report, a worldwide rice shortage has caused consumers to stock up at warehouse stores in northern California. Since rice is a staple in so many homes, there is now fear that stores will run out. Some are even rationing rice.

A 20 pound bag that sold for $9 just two months ago, now sells for $16.

"The expectation of high food prices tomorrow drives up the prices of food today, when people buy food and store it," said UNLV professor Stephen Miller.

Because of the current rice shortage, places like Sam's Club and Costco are asking consumers to limit how much rice their customers buy.

But it doesn't stop there. The U.S. faces the worst food inflation in 17 years. Food prices nationwide rose 4-percent last year according to the Department of Agriculture. And it could happen again this year.

"It's hard. I mean, when I was single, I was struggling to pay bills and now I'm struggling to buy groceries. I never thought that day would come," said shopper Dawn Miller.

In a recent poll, Americans ranked food prices just below gas prices as their top two concerns. Half of those surveyed said higher food prices have caused unexpected financial hardship.

"A year ago, I would spend $50 or $60 at the grocery store, meat, cereals. Now, I'm spending $100," said consumer Felicia Pedley.

Consumers will feel the pain across the aisles. Poultry is up 7-percent, fruit and vegetable prices fluctuate weekly.

"It's all demand and supply. I know people don't want to hear that, but you can't control the price because then you will have rationing," said Miller.

The Nevada Dairy Commission says the price of milk usually fluctuates frequently. They expect the price for a gallon of milk to go down next month.

Economists say nationwide severe weather, soaring demand and ethanol is the cause for the growing grocery pains.

Ethanol is made from corn, so it takes the starch off the shelves and sends the price per bushel through the roof, so the battle for food or fuel will continue for awhile.

The price of gasoline has also gone up. The average for drivers around the country is $3.53 a gallon. That's also the average price we're paying right here in Las Vegas. Statewide, the price is a little higher, averaging $3.60 a gallon.