Obviously prices are higher. Have you noticed, though, that sizes are shrinking?
I love chocolate, paricularly Dove milk chocolate. A bag of it was $5.87! AND, when I pulled it off the shelf the bag was puffed up with air, and there were 10 pieces inside. I remember beingable to buy a bag for $3.50 and there were 26 pieces in it.
I put it back. I just couldn't do it.
Now, chocolate is a dumb example, I realize. The same thing is happening to everything. Here's the good news: smaller packages means you can store them more easily as you stock up before prices go hyper-crazy. And, another positive thing: it might be a good time to break some bad habits (such as not buying the chocolate, for me).
One last thought: the smaller volumes is a sneaky tactic, and many people will not understand the double-whammy and will go through their grocery money way too fast. Credit card debt will spike, but so will crime. Keep extra vigilant.
The changing volume sizes aren't just in food now. I bought a giant 40 fl. oz. of dawn dish soap several months ago. Buy bigger get a better price per fl. oz. Now when I went to buy a new one it was 38 fl. oz. and yet $0.80 more expensive over the old one.
Milk and eggs just went up again too. Store-brand milk per gallon of skim was at $2.99 for a couple months. Suddenly jumped to $3.19 in one go. Eggs used to be $1.99 per dozen for about half a year, now $2.79 per dozen in one leap. And there was a sign above that said "due to the bird flu, prices may rise and stock may be low." It's all orchestrated.