Soaring Prices Cause 6.1 Percent Jump In Food Prices The Past 3 Months

May 15, 2008 10:26 a.m. EST

Washington, DC (AHN) Food prices went up 6.1 percent in the past three months from February to April, the Bureau of Labor Statistics reported Wednesday. On a month-to-month comparison, food cost jumped by .9 percent in April from March. It was the largest one month hike in food prices in 18 years,

The increasing food prices were felt in all categories, but particularly for grains and oils. Bakery products and cereals registered a monthly rate increase of 1.4 percent and an annual rate of 20 percent for the past three months.

In contrast, fats and oil leapfrogged by 4 percent in April and 26 percent annually. Sugar and sweets had a 10 percent increase.

The report pointed to soaring global grain prices as one of the main reasons behind the huge upward price adjustment.

Meanwhile, a growing number of New Yorkers are coping with the escalating food cost by buying their food supplies at Chinese groceries, known for their lower price tags.

David Chen, owner of the Chang Jiang Supermarket on Kissena Blvd., estimated 30 percent to 40 percent of their customers are now non-Chinese. Chen told the New York Daily News he manages to keep his prices lower by purchasing items in bulk from other stores or directly from farms.

Peter Koo, president of the Flushing Chinese Business Association, said although they had to bring up their prices too, still their goods are cheaper compared to items sold by retail chains.