Food prices are reportedly expected to rise again in January

If you think your grocery bills are high, wait until next month.

A fresh wave of supermarket price hikes is expected to begin in January, raising prices anywhere from 2% to 20% on a slew of staples including pasta, condiments, soups, cookies, produce, dairy products and meats, according to a report. 

A soaring inflation rate of 6.8% as of November – the highest rate of increase in 39 years – shows no signs of slowing down, with major food manufacturers preparing to raise their prices once again, according to the Wall Street Journal.

Persistent supply-chain disruptions and increasing labor costs are a major factor in the increases.

Kraft Heinz — which makes Oscar Mayer lunch meats, Kraft Macaroni & Cheese and Jell-O pudding — told retailers it is planning to raise prices on some items by as much as 20%, according to a memo viewed by the paper.

Inflation is goosing grocery prices.
Bloomberg via Getty Images

The average price increase on Kraft Heinz products will be 5%, the company told The Journal, adding that some products like Grey Poupon mustard will increase by 6% to 13%, because its production costs have risen by 22%.

Mondelez International, which makes snacks including Oreo cookies Ritz crackers will increase prices by 6% to 7% in January, the company said last month.

Other food manufacturers including Campbell Soup and General Mills, maker of Cheerios, have also warned that they will be raising prices on their goods in January but have not disclosed what the price hikes will be.

A lone shopper in a supermarket snack aisle
Not all supermarkets are raising prices right away.
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Consumers have already been walloped by high food costs, according to government data.

The Food-at-home index, which includes grocery stores, rose 6.4% over the past 12 months with proteins including beef, poultry, fish and eggs increasing by nearly 13%.

The price hikes are now changing how consumers shop with some choosing less expensive meats, like chicken and ground chuck, and other items that have risen dramatically or forgoing certain items altogether, according the publication.

Retailers are pushing back as well.

A shopper peruses cereal choices
Some shoppers are already responding to the hikes by purchasing cheaper alternatives to their usual favorites.
Xinhua News Agency via Getty Ima

The largest supermarket company, Kroger Co., is delaying when price increases take effect and challenging manufacturers on the rate of increases, Stuart Aitken, chief merchant for the chain, told The Journal.

“Taking price increases is never a good outcome,” Aitken said.