Higher cost of food hits consumers

“It has thrown the whole industry into a tizzy,’’ says Dan Bates, director of merchandising for the produce division of grocery chain Supervalu Inc.

Food prices rose 3.9 percent last month, the most since November 1974. Most of the increase was because harsh winter freezes in Florida, Texas, and other Southern states, which damaged crops.

At the same time, global prices for corn, wheat, soybeans, coffee, and other commodities have risen sharply in the past year. That’s raised the price of animal feed, which has pushed up the cost of eggs, ground beef, and milk.

Paul Ashworth, an economist at Capital Economics, says his firm has warned since last summer that spikes in commodity prices would eventually work their way down to wholesalers and consumers, “and here it is. There is plenty more to come over the next few months.’’

Crop prices began to increase last summer, after droughts slammed harvests in Russia and several other countries. Sharp growth in new world economic powers like India and China has also increased demand.

Overall, the producer price index, which tracks price changes before they reach the consumer, rose 1.6 percent in February, the Labor Department said yesterday. That’s double the rise from the previous month and the biggest increase since June 2009.

More expensive food means people have less money for the casual spending that helps the economy grow and create jobs.

Hints of steeper food prices are likely to show up in the government’s report on consumer prices, due out today.