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I work for a growing upscale grocery chain (annual sales will top 800 million this year from 600m last year). We measure food inflation at around 4.5% although some of the items have obviously gone up much more than that. Eggs are up considerably from last year but they were down last year from the year before. Our chicken prices are flat but we've noticed some of our competitors prices have gone up. Milk has seen the largest increase. One of the reasons for the larger increase in milk is it already has one of the lowest profit margins of any item in the grocery store (only about 12% vs 45% on most non-sale items) and of course it is extremely perishable. Any cost increase must be passed on almost immediately unlike some other items.

The other big cost factor increase actually started 2-3 years ago was the increased cost of delivery. It's actually leveled out for us retailers this year, but some of the price increases may have been caused by the fuel rise from last year and the year before. Since gas prices have actually dropped this year, we're not expecting any significant delivery cost increases this year or next.

The other big cost factor increase actually started 2-3 years ago was the increased cost of delivery.

And yet, prime strip/ribeye can still be happily had for $5.99/lb. Thank goodness the cows live near me and don't have to ride a truck to my plate!