For those of your in denial...
The folks at the USDA released their projections for 2011/2012-food price inflation. The bad news is that feeding ourselves will cost ~4% more in 2011. The good news is that USDA thinks prices will rise only ~2.5% next year.
I shop (I hate it). My food inflation is closer to 10%. It depends on what you eat. For example, from the report:
Meats, poultry and fish +6%
Fresh vegetables +5%
Cooking oils +7.5%
These items are all well above the average set by the USDA. The following kept the index low:
Processed vegetables +1.5%
After looking at this I loaded up on canned peas and Coke.