USDA: Grocery prices to go up

Stocking up at the grocery store could by adding up.  The USDA says food prices could go up by 3% this year.

Shoppers like Allen Kenwood already try to cut costs any way they can.  “A lot of times I go generic because of the prices.  You might lose a little quality, but then again survival is survival.”

Last year, Americans saw the smallest increase in food prices since the sixties at less than 1%.

This year, the price of corn and energy is on the rise and the USDA says prices could go up 2-3% as a result.

It says shoppers spend most of their food budget on meats, followed by fruits and vegetables.

Longtime grocer Larry Baus works at Shur-Fine in Lincoln.  He says he's been seeing those prices go up slowly but surely.  “We need to accept smaller margins when the prices go up because people will just stop buying fresh produce and it will sit on the rack and it won't sell.”

He adds that for his stores, staying local helps them stay competitive.  “We have less overheard.  We have less big guys to pay.  I sack groceries, I check out groceries.  There aren't too many presidents of companies, the big ones, that do that.”