The drought that's spreading across the Midwest is hurting consumers' wallets, and it's going to get worse as rising costs for soybeans and corn could lead to more expensive meat and other food staples, according to CNNMoney.
Meat prices were on the rise before the drought started in the Midwest, according to the article. The price of sirloin steak jumped more than 15 percent from June 2011 to June 2012. Ground beef rose more than 8 percent and chicken prices rose more than 6 percent, according to the U.S. Bureau of Labor Statistics and U.S. Department of Agriculture. The price of ground beef could jump to $2.88 a pound this year, a 4 percent jump from last year when the average price was $2.77 a pound. Prices for sirloin steak could rise 25 cents per pound to $6.47.
"Although supply of beef may be higher in the short term as a result, we can expect beef prices to rise in the long-term for consumers shopping at grocery stores," Sam Zippin, an analyst at Sageworks, told CNNMoney.
Corn prices have risen by 20 percent in the last month and soybean prices have jumped 15 percent, according to the article. Corn is used for animal feed, so rising corn prices can quickly trickle down to consumers.