Drought conditions in the U.S. are expected to boost Canadian food prices by as much as four per cent next year.

Economists predict we'll be paying more for everything from pork to cereal.

RBC economist Paul Ferley expects food costs will rise 2.5 to 3.5 per cent this year and three-to-four per cent in 2013.

Extreme drought conditions in several U.S-Midwest states are causing corn and soybean crops to wither, and analysts say the effects will ripple through the food chain.

Because corn is used to feed livestock in the U.S., Scotiabank's Patricia Mohr says the rising cost of beef and pork will be most noticeable on grocery store shelves.

Last week, Tim Hortons raised the price of some baked goods and lunch items, and Maple Leaf Foods CEO Michael McCain warned that it too will be jacking up its prices.