US food prices increase as costs surge

The prices from some of the biggest food suppliers and restaurants are continuing to increase along with overall cost of goods in the US, according to an article published on the Wall Street Journal website on June 11.

Cory Onell, chief sales officer at Kraft Heinz, told retailers the economy is affected by inflation and costs continue to increase thus influencing prices.

Kraft, Tyson and McDonald's owners say higher fuel, labor and ingredient expenses are driving inflation.

CEO Randy Garutti of Shake Shack said: "Inflation is real, and it's not going to get any better any time soon in the restaurant business."

According to the Labor Department on Friday, grocery prices rose 11.9 percent in May over the past year. The number is 7.4 percent when it comes to prices at restaurants and other food venues outside the home during the same period.

Both numbers mark the biggest jump in over four decades and customers have to endure severe wholesale price increases, according to the article.

"We know the pressure that consumers are feeling," CEO Mark Clouse of Campbell Soup said.

In response, more people are buying cheaper brands or decreasing their frequency of eating out at restaurants, the author said.