Groceries sure to rise
Page 1 of 2 5:00AM Sunday September 23, 2007
By Alice Hudson
Staples of the Kiwi shopping basket such as bread, butter and cheese, as well as treats such as chocolate and icecream, are set for big price hikes, the food industry is warning.
Whether you blame biofuels, the Australian drought or China's newfound love of cakes and New Zealand dairy products, the trickle-down effect of worldwide hikes in prices for basic commodities is going to hit us in the pocket, almost certainly before Christmas.
Significant price rises will affect almost any product made of grain or milk.
Fonterra raised the price of wholesale butter 23 per cent last week, an increase supermarkets say could be passed on to consumers within weeks. And sky-high wheat prices worldwide are set to send the cost of bread soaring by about 20 per cent.
More
here .