Families suffer as food prices jump: lawmakers

By Christopher Doering

WASHINGTON (Reuters) - Soaring food prices have forced U.S. families to cut back on fruits, vegetables and other items, as the poor and middle class spend more of their budgets at the grocery store, lawmakers said on Thursday.

"Everywhere you go food prices are higher and higher and higher," Sen. Charles Schumer said at what has been billed as the first Congressional hearing with House and Senate lawmakers to discuss the impact of high food prices.

The New York Democrat, who leads the Joint Economic Committee, added his family is budgeting $40 more a month for groceries. He said anxiety over food prices will equal or surpass concern over high energy prices.

"When gas prices are high, families may decide to drive a little less or carpool or take the subway. When food prices are higher, families can't just decide to not feed their children."

During the last year, bread prices have jumped 12 percent, milk 20 percent and flour 32 percent. A dozen eggs are 30 percent more expensive and tomatoes and bananas up 13 percent.

"We need to find ways to bring relief to families who are feeling the squeeze of higher prices," said Rep. Carolyn Maloney, a Democrat from New York.

Consumer food prices normally rise by about 2.5 percent annually, but they increased by 4 percent in 2007, the biggest increase in 17 years. And forecasts for 2008 are pointing to another rise of 4 percent to 5 percent as retailers pass higher energy and commodity costs to the public.

USDA Chief Economist Joe Glauber said as global crop production improves, and stocks of wheat, rice and other commodities return to more normal levels, annual food inflation will drop to between 2 percent and 2.5 percent.