Higher food prices the new reality for consumers

By Nicole Maestri - Analysis

CHICAGO (Reuters) - Consumers should start getting used to those higher grocery bills and restaurant tabs.

To offset soaring commodity costs, U.S. food makers and restaurant chains have been raising prices on everything from chicken wings to chewing gum to coffee.

The price hikes are hitting U.S. consumers at the same time they are being squeezed by slumping housing values, higher fuel costs, a weakening job market and worries of a U.S. recession.

But relief from higher food prices is nowhere in sight.

Food executives speaking at the Reuters Food Summit in Chicago this week said that surging global demand, a weak U.S. dollar and a trend toward using "food for fuel" means these inflated commodity and food prices could be the new reality.

"Long-term projections say that these prices are here to stay," Bauke Rouwers, senior vice president of foods for Unilever Plc/NV's (ULVR.L: Quote, Profile, Research, Stock Buzz)(UNc.AS: Quote, Profile, Research, Stock Buzz) Americas region, told the Reuters Food Summit.

FIGHTING SOARING COMMODITIES

Food companies have tried to offset soaring prices for commodities like wheat, cocoa, milk and energy by cutting costs and making their operations more efficient.  Continued...