NASHVILLE, Tenn. -
As a result of last year's drought and higher demand, grocery prices are predicted to increase nationwide in 2012.
Restaurants and grocers were able to absorb some of the additional food costs in 2011, but this year, the costs are expected to be passed on to local consumers.
The prices of eggs and milk are anticipated to stabilize in 2012 but coffee, peanuts, chocolate and wine are expected to suffer a price increase.
The consumer price index, based on forecasts by the United States Department of Agriculture, predicts the cost of beef and fish to rise by 5% in 2012 and chicken by 4%.
Other projections in the study predict dairy prices to increase by 3%, fruit by 4%, and cereal and bread by 4.5%.
Restaurants and farmer's markets are also expected to be affected with an increase in prices.
