Expect Your Breakfast Costs to Rise

Hungry stomach anyone?

Our frugal finance editor points out that the prices of Chex, Cheerios, and Wheaties will go up November 15. General Mills has announced it is raising its prices by “low single-digit percentages,” so stock up on your breakfast cereals before then. On Jan. 3, 2011, the company says it is instituting slightly bigger price increases for Pillsbury and Betty Crocker baking mixes.

Other large food companies may soon follow with their own price increases. The commodity prices are jumping with prices of wheat and corn and soybeans skyrocketing. Corn is up 44% from a year ago, milk up 6.5%, hot rolled coil steel up 4%, copper is up 29% and oil up 14% from a year ago.

We warned you about this coming inflation, but with no net positive change in jobs and no real improvement in the economy. It’s a result of increasing world demand for real products, excessive government money printing, and soon you will see the speculators drive prices even higher because Wall Street has to have something to push in order to make money.

Our frugal finance editor says that more is coming, so act accordingly.