Prices for grocery items from chewing gum to pork chops are the highest they've been in three years, giving fuel-frustrated consumers another thing to moan about.
Nationally, food and other grocery prices in April were up 3.9 percent from a year earlier. Orange County grocery bills rose nearly twice as much, spiking 5.7 percent over the same period.
The local number marks the worst month for grocery inflation since late 2003, according to the U.S. Department of Labor. In all of 2006, prices rose just 1.1 percent in Orange, Los Angeles and Riverside counties.
The trend is tied to two key factors, soaring prices for gasoline and corn. Both affect businesses across the food supply chain and others that supply grocery store products.
"The Los Angeles area the last few months has been hit harder and faster than the rest of the country," said Amar Mann, an economist with the Labor Department's San Francisco office.
In California, fuel prices have jumped about 32 percent this year, from an average of $2.61 a gallon in early January to $3.45 a gallon this week. Meanwhile, demand is rising for corn – used in making ethanol and a key food source at feedlots across America.
In a recent conference call with investors, Jeff Noddle, chief executive of Supervalu, said "demand for ethanol" and this year's citrus freeze in California have affected store prices. Supervalu is the parent company of Albertsons, Orange County's No. 2 grocery store.
"Those higher prices are now filtering down to the consumers," Mann said. "And food is not recreational where people can give it up. It's as essential as it gets."
In Southern California, for example, the cost of breakfast cereal went up nearly 10 percent in April, compared to the same month last year, according to government data.
More specifically, The GroceryGame.com, a Web site that tracks supermarket prices at major grocers, said a Colgate brand of toothpaste increased 70 cents to $3.99 at Ralphs stores in Orange County over a period of a year. At Vons, a 34 oz. can of Folgers coffee increased from $10.13 in April 2006 to $10.49 in February 2007, the Web site stated.
Shoppers are noticing.
"Right now, it's just pennies. But I bet by July 4 it'll get higher," said Deanna Quast, 61, Thursday afternoon, just after spending $100 on groceries at Albertsons in Orange. Quast was noting seasonal trends, in which gas prices tend to get higher in the summer.
At the same supermarket, Gene Loeffler said cereal prices were "so expensive" that he bought only one 1-pound box of Fruit Loops for $5, rather than his usual practice of stockpiling two boxes for his family of six.
Teri Gault, chief executive of TheGroceryGame.com, said despite higher food prices, she's seeing competitive sales and special promotions on food items, such as two-for-one deals. She's also seen coupon values increasing as manufacturers try to lure shoppers to their brands.
"We're seeing good deals all over the country," said Gault, whose subscription-fee Web site provides consumers tips on how to save at the supermarket by combining coupons with store discounts.
The site, whose fee is $10 every eight weeks, tracks markdowns among Southern California's top supermarkets including Vons, Stater Bros. and Ralphs.
In recommendations to shoppers, Gault – whose Web site has seen a 25 percent increase in members over the past few months – said savvy shoppers can actually save more amid spiking prices.
For example, at Ralphs stores in Orange County, GroceryGame snagged Colgate Total for 99 cents in April 2006 by using a coupon when the item went on sale. That's down from a retail price of $3.29.
A year later (March 2007) that same toothpaste brand cost $3.99. Yet, because coupon values are higher and store discounts lower this year, Gault said GroceryGame shoppers got the same brand for 50 cents. She also says her Web site, on average, saves a family of four $482 a month.
"There's always a way to save money," said Gault, an avid coupon clipper who founded the site in 2000.
Shopper Quast has noticed the good promotions lately at her local supermarkets, but said she's not ready to tackle coupon clipping, just yet.
"It's such a pain."