The record price of crude oil could affect your breakfast costs.
The price crude oil reached an all time high today of $103 a barrel. Now while you wouldn't think the price of oil would effect the price of your breakfast and lunch, it does.
Because of high costs to oil and alternative fuels mainly E–85 ethanol fuel, the price of flour has steadly increased over the past two years.
Mark Smith of Main Street Bagels says he will have to raise prices a nickel on bagels because of the rise in flour prices. Smith says, "The price of flour for baking has gone up probably 300 % in the last two years. In the last two months it's about doubled."
The price of flour is going up because former wheat fields are being converted into corn fields to help fuel the need for E–85. With fewer wheat fields there is less flour. And with higher demand for flour from countries like China the price has sky rocketed.