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Drought to lead to grocery price spike

Jul. 20, 2012 - With the recent drought hitting the U.S. and Canada, consumers can expect prices of staple foods and meats to increase significantly over the next few months.

According to an article in the Calgary Herald, foods such as corn, soybeans, barley and wheat, as well as poultry, beef and pork can all be expected to increase in price.

Canfax senior analyst Brian Perillat says that as long as the drought continues, the effects will stack and consumers will be hit. "The drought and the increase in feed prices will be a shock to the system. In the short term, it will cause some losses in the feeding industry, but it will affect prices for all producers to the negative."

For more information, you can read the full article online at the Calgary Herald.