As food prices rise, so do school lunch costs, reports the New York Times. Meal prices have increased about 25 cents across the country as schools struggle to feeds students with increasingly expensive fruits, vegetables, milk and bread.

While some schools are raising lunch prices, others are reducing food management costs, buying cheaper plates and cups, or replacing individual rolls with slices of French bread. The U.S.D.A. recently issued a report called "Meeting the Challenge of Rising Food Costs," to help school districts learn to stretch their budgets.

Many worry that price increases are hitting schools hard just as administrators are getting hip to the idea of healthier - and more expensive - fare, replacing chicken nuggets with baked chicken breasts, french fries with fruit. Will we go back to the bad old days of "economy loaf" and iceberg lettuce salad?

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Pizza, that inexpensive, staple food of students and late night revelers, is about to get a little more expensive. Pizza shops and other businesses that use a lot of flour are feeling the pinch of rising prices and are starting to pass those costs along to the consumers. According to a report on Philadelphia's NBC10, in addition to being effected by rising fuel costs, flour prices are also going up as farmers plant corn in place of wheat in order to meet the demands of alternative fuel manufacturers.

Pizza will still remain relatively inexpensive, with slice prices going up in $.25 and $.50 increments. Whole pie might run you a buck or two more than they did in the past.

[via NBC10]

California has been hit by an unusually bad cold snap this year and the effects of the freezing weather have really taken a toll on crops - and the bad weather isn't even over yet. Some estimates say that at least 75% of the citrus crop has been destroyed and others say even more, drawing from the more than 80% that was ruined the last time the state suffered a severe cold snap. The weather is so bad that Governor Arnold Schwarzenegger declared a state of emergency in the 10 agricultural counties that have been hardest hit by the weather.

86% of the lemons and 21% of all the oranges sold in the US are grown in California, which makes it the largest citrus-producing state in the country. The loss of crops is devastating to the farmers, but it will also hit consumers hard at the grocery store. Orange and lemon prices are already increasing and the wholesale price has more than doubled in the last seven days alone. Juice prices will increase as well. "The price spike is expected to hit supermarkets in the next two weeks, when the present inventory dwindles."

While citrus is taking the biggest hit, basically every winter crop in California has been damaged, from avocados to lettuce, and consumers across the country will feel the effects of doubling and tripling prices in the produce department, especially if they want to buy US-grown fruits and vegetables.

Jonathan already put together a comprehensive guide to sparkling wines and champagnes for your New Year's Eve plans (or any other celebratory occasion), but the LA Times has a guide that is separated out by price, rather than by region, which will certainly help you make a quick decision based on your budget. Take a look at their full list for detailed descriptions of the flavors of each bubbly and details of where they found the best prices for every bottle. Here is the abridged version, by price:

$20 or less

• Caves de Bailly Brut de Charvis, N.V. - $11.
• Bele Casel Prosecco, N.V. - $13.
• Roederer Estate Anderson Valley Brut. - $17.

$21-$30

• Duval-Leroy Brut, N.V. - $25.
• Drappier Carte d'Or Brut, N.V. - $30.

Kellogg's is planning to raise prices and decrease package sizes for its ready-to-eat boxed cereals this fall. The cereal giant is expected to increase its marketing budget, or at least maintain it, to make sure that customers keep buying their products in spite of pricing changes. After all, they have to convince the consumer that it is worth paying more money for less cereal for their profits to remain the same.

But is it worth it? The two main reasons that people eat cold cereal are convenience and price. A bowl of cereal takes seconds to prepare and you can get several meals out of one box. But, if given all the time and luxury of a relaxing Sunday, cereal might not be the first thing that breakfasters would reach for. A small price hike, about 2%, might not make a big difference in buying habits, but it will certainly set the stage for other cereal companies to follow in the footsteps of the largest cereal company and could even lead to further changes in pricing. When consumers realize that they are getting less than what they think they're paying for, some might stop buying cereal on a regular basis and the companies could be hurt more in the long run.

Whole Foods is rolling out new ads to emphasize the low priced items they say they've been selling all along, according to an article in the New York Times. Apparently "whole paycheck" has just been hiding their competitively priced light under a bushel. Prices of certain items will now figure prominently in the new ads. According to the NYT article, Business Day ran some price comparisons between Whole Foods, Trader Joe's, a Manhattan Walgreen's and Food Emporium. Kashi cereal and Philadelphia Cream Cheese were both cheaper at Whole Foods. I've done a few informal price comparisons between my local Whole Foods and Publix supermarket and also found that prices on items like Nature's Path cereals (my beloved Optimum Power Breakfast) and Blue Diamond almond milk are generally cheaper at Whole Foods. The ads will run in New York City for the next 10 weeks.

[Image: NYT]

The theft of beer kegs from pubs and breweries is on the rise in the UK, according to a recent story in The Publican. Apparently beer isn't what the thieves are after, however. High prices of aluminum and steel are to blame, with kegs being worth around £50 (approximately $90). One brewery actually reported a theft of 100 kegs in 13 minutes one night. Some thieves are even posing as beer distributors collecting empties. Local police are urging pub owners to keep their kegs in more secure locations for now.