Even stay-at-homes can't dodge rising costs
CHICAGO - Rising costs for bread, cheese, and propane will make today's Fourth of July holiday more expensive than last year's, even for those who decide to avoid higher gasoline prices by grilling at home.
Bread cost 16 percent more in May than last year, cheese jumped 14 percent, snack foods are up 7.4 percent, and ice cream gained 5.9 percent, Labor Department data show.
While hamburger, hot dog, and pork chop prices are about the same, that's only consolation for consumers who like their meat raw: Propane used in grills costs 29 percent more, Energy Department data show.
"There's not a thing out there that has not gone up in price," said Mike Mills, a barbecue restaurant owner in Murphysboro, Ill., who is past president of the National Barbecue Association and a former championship griller. "It's kind of like you get nickel-and-dimed to death."
Gasoline has risen to record prices above $4 a gallon, and the number of travelers over the holiday will drop for the first time this decade, AAA said.
The savings on fuel, however, are being eaten up by rising costs at the grocery store. Food inflation last year accelerated at the fastest pace in 17 years, and the government forecast a bigger increase in 2008, led by gains in dairy and grain prices.
The price of propane for residential use is forecast to be $2.65 a gallon this month, up from $2.05 last July, according to the Energy Information Administration.
A refillable 20-pound propane tank used in full-size grills costs about $20 each, up 10 percent from last year, said Donna Hollis, chief financial officer for Country Gas of Madison County, a retailer in Huntsville, Ala.
Mills said he will turn his grill on 15 minutes before cooking to conserve propane and charcoal at home this weekend. In the past, he said he'd start an hour earlier.
Mills also said he will cook pork and chicken rather than the more expensive beef steaks.
"I am a steak lover," Mills said. "I am not going to be doing any steaks."
Retailers are passing along higher prices to consumers as global demand for food boosts US exports, production is disrupted by harsh weather, and more crops are used to make fuel, the US Department of Agriculture said.
The annual gain for cereals and baked goods will be 9 to 10 percent, up from the 7.5 to 8.5 percent forecast in May and the most since 1980, the USDA said June 27.
Fats and oils may rise 11.5 to 12.5 percent, sugars and sweets may gain 4.5 to 5.5 percent, and poultry may jump 3 to 4 percent, the USDA said. 