Food prices rose 7.9 percent in February from a year earlier, the biggest increase since July 1981. This is forcing companies to rethink their marketing and pricing policies.
"Consumers are becoming more price sensitive," said IRI Worldwide's president of strategic analytics.
According to Lael Brainard of the Fed, for those already buying cheaper options "will either have to put up with the increased cost or consume less."
Rising food costs could slow economic activity in the U.S. due to lower consumer spending. Earlier, the head of JPMorgan stated about a similar problem. He noted that the accumulation of poor people in the U.S. is declining at a rapid pace.