Why are cereals prices so high? You push the cart down the cereal isle and BAM. It's insane. Sure grains and what not have risen in price but how in the heck is a family supposed to feed their kids in the morning? I thought it was interesting that 30% of all milk sales are for cereal purposes.
Food and energy are not part of the governments measure of inflation. So you really are not seeing higher prices, it is a government mandated illusion.
The input cost to companies like k, Kellogg, and gis, General Mills have doubled. Think corn at an all time high, and corn flakes. Look at eggs, 2.5 years ago we retailed them at .99 for large, now 2.19. Corn again, which by the way is not so secretly being burned in our cars. The governments food for fuel program is the problem with food inflation, and the weak dollar.
:( It is not going away. Dodd-Frank bill might wring out some of the bloated speculative pricing in commodities, but the trend is perpetually up.