In the U.S., new government data shows food prices rose close to four percent last month - the highest since 1974. And producer prices surged in February at their fastest pace in one-and-a-half years, one day after the Fed Reserve downplayed the threat of inflation.

Wholesale food prices posted their biggest monthly jump since 1974 according to the latest government data. Experts are warning-get used to higher food costs.

Classic supply and demand is pushing up global prices of food staples like meat, dairy and grains. Wheat and corn costs alone are up 75% from a year ago.

As those price increases translate into higher grocery bills, Americans facing an ugly job market and higher gas prices are cutting back, hitting food producers like Sanderson Farms, the country's fourth largest poultry producer. CEO Joe Sanderson.

Jose Sanderson, CEO of Sanderson Farms said "We do not believe that store traffic, store sales, the food service market is going to strengthen until Americans get their jobs back."

Still at less than one-fifth of the average U.S. household budget, rising food bills are going to hurt other countries much harder where a majority of the household budget is often spent says Daniel Guftason, Director of the U.N. Food and Agriculture Organization.

Dan Guftason, Director of Food and Agriculture Organization, United Nations said "We will see certain at the margin changes in consumer behavior and what kinds of food and eating out less and things like that but it would really be relatively small changes in comparison with the kind of things we would see in developing countries."

Rising food prices have pushed 44 million under the poverty line in developing countries according to the World Bank.

In addition to sheer demand, the price of oil is also causing high food prices to rise. That's because it boosts both transport and production costs.

But Guftason does not expect prices to spiral out of control.

Dan Guftason said "I think the expectation that things will go much, much higher, while it's a risk it's certainly not inevitable."

The good news: Because bad weather was such a factor in the past year- better weather could bolster future crops. That could boost supply and ease pricing pressures.