Some dinnertime favorites are about to cost you more. Chicken and pork prices are on the way up as the latest items hit with widespread food inflation.

The biggest driver to prices is grain costs, which have been affected by the rise in ethanol production and strong export demand due to the weak dollar. Corn costs have more than doubled over the last two years from $2.50 a bushel to $6. That has added $6 billion to chicken farmers' annual feed bills, according to the National Chicken Council, a trade group.

As a result, companies are slaughtering animals to tighten supply. The move will temporarily increase supply, lowering prices, but as farms herds and flocks get smaller, it will raise prices.

Tyson Foods Inc., the world's biggest meat producer, forecasts that its expenses will rise $1 billion this year, including $600 million for corn and soybean meal and $100 million on grain. The balance will come from higher prices for cooking oil, breading and fuel costs, the company said.

Pork farm losses may total $3.8 billion for 2008, one-quarter of total production, according to Chris Hurt, an agricultural economist at Purdue University. He calls the industry "a financial disaster in progress."

The exception may be beef, as already high beef prices may not see the increases that chicken and pork could, said Jim Hilker, an agricultural economist at Michigan State University.

"I'm not sure beef prices will go up a lot, but they won't come back down," he said.

Despite skyrocketing prices, there are ways to manage your grocery bill.

Nancy Charlton is out to get the most from her grocery shopping dollar.

"I'm always looking for things to be on sale. That's the only way I can make ends meet nowadays," she said.

But it's no easy task due to the rising costs of fuel and corn, which affects everything from the citrus fruits trucked cross country to the chicken fried in corn oil in the deli.

While grocery store prices are up around 5 percent store wide, analysts predict bigger jumps coming for pork and chicken.

But there are tricks to keeping your grocery bill down.

"Most economic way to buy chicken is whole body. Then you want to go to your value pack, the large sizes are almost always going to be a better price," said Julie Wonderling.

Here's a tip for frugal shopping. Stay in the perimeter of the store -- produce, baked goods, the meat department. Because as soon as you turn down an aisle, you're paying more for the processing and packaging.

ennifer Birdsell skipped her normal brand of bread on Tuesday because for the first time, it topped the $4 mark.

"I decided to go with the Haggen brand and I was able to get two loaves of bread for the price of one," she said.

Charlton bought vinegar to mix with water for cleaning. It's cheaper than pre-made cleaning products.

"I shop frugally, and I've even started making my own bread more now. I make my own soups, I don't buy canned soups anymore," she said.

Overall food inflation could double this year, lifted by the rising costs of fuel, corn and soybeans, some analysts predict.

Food inflation hit 4 percent last year, up from 2.4 percent in 2006.

Related Stories: