In the desserts aisle of a bustling Manhattan grocery store, South Carolina natives Nancy and Keith Huffaker place a box of assorted cookies in their shopping basket. They’ve come out to satisfy their after-dinner sweet tooth and though they admit the prices are higher in New York, they don’t believe food prices are on the rise.
“I’ve been here for three years and I don’t think it’s too bad,” said Mr. Huffaker. “But you can use more discretion with food, like change brands. Gas prices are a bigger threat.”
U.S. wholesale prices increased for the eighth consecutive month in February, led by a sharp rise in food prices—the highest since 1974. Energy prices also jumped. But some consumers, like the Huffakers, say they have yet to notice a difference on their grocery tab. Economists said producers might feel the pinch as they struggle to pass on the higher costs.