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Commodity prices have been rising for a few years, said Rob Handfield, an N.C. State University professor and director of the Supply Chain Resource Cooperative, which works with companies on problems in getting needed materials.

Until now, companies have been successful in offsetting those increases, he said.

But "fuel has impacted everything," Handfield said. "We had droughts and bad weather. It was sort of a perfect storm of all these different factors combined."

World demands more

Adding to the strain: This round of inflation seems longer-lasting compared with recent periods of rising prices that were tied more directly to weather or other supply interruptions.

Growing middle-class populations in countries such as India and China are goosing demand for commodities worldwide. That global growth, economists say, will offset any weakness in the U.S.

"All estimates are that it will probably continue for awhile," Handfield said.

Historically, we have had periods with even greater inflation, said N.C. State economist Michael Walden.

"The '70s or '80s had double-digit inflation," he said. "In the late '80s, we had 6 percent inflation. ... We have gotten spoiled this decade with very low inflation rates."

People are reacting strongly this time around because the inflation is affecting the prices of essentials, Walden said.

"You're typically more sensitive to price increases for things that you buy frequently. And most people buy gas once a week and food once a week," he said. "Clothing prices are going down. Electronics. Computers. But you don't buy those things every day."

But as long as gas prices remain high, consumers should expect higher prices, Handfield said.

"It's quite possible we'll see $100-plus barrel gasoline for the next five years," he said.

Creeping inflation

Businesses such as Catering Works of Raleigh have found ways to reduce costs.

The company has taken a hit from the high price of gas, the rising cost of food and a 10 percent to 15 percent annual price increase for the 1,500 pieces of plasticware it uses every day.

"It's just been kind of creeping," said Lorin Laxton, who owns the business with her sister.

The company is grouping deliveries to save gas and has also added a $2 gas surcharge to deliveries.

Catering Works also is switching to plates and utensils made from corn and potato. Not only are they better for the environment, but they are about 15 percent cheaper.

And in buying food, the company is looking for more locally grown options and adjusting the estimates it gives clients to reflect its higher costs. But even that isn't foolproof, because large events are often planned a year or more in advance, Laxton said.

"If it's between $5 and $10 a pound, we may just say: Let's price it at $8 a pound and hope for the best," she said. "But then there's suddenly a tomato shortage in Peru."

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