Biggest increase in US food prices in 17 years

US consumer food prices normally rise by about 2.5 percent annually, but they increased by four per cent in 2007 the biggest increase in 17 years, according to US Agriculture Department data.

Prices continue to rise. A survey conducted by the American Farm Bureau Federation in February showed that in the beginning months of this year, the cost of 16 grocery items, including flour and cheddar cheese, was $45.03, up $3.42, or 8 percent, from the fourth quarter.

That has consumers like Laura Miller taking a calculated approach to shopping, much of which she does at Wal-Mart in Santa Clarita, California, a planned community on the outskirts of Los Angeles.

Reuters