Why Is Your Cereal Getting More Expensive?

Ken Powell, CEO of General Mills, says that food inflation is at an all-time high, with it rising 11 percent in 2011. Based on his 30-year history with General Mills, Powell says he's never seen prices this volatile, but he's trying to make sure that prices stay low enough for consumers to keep their purchasing habits. Consumers are moving away from the restaurant and toward the grocery store, which is a long-term positive for his business. With indicators pointing that the food inflation will continue, it's interesting and perhaps troubling to see where the industry will be headed in the next few years.