ST. JOSEPH CO. — Households across the country are taking another big hit. Not only are people paying more for gas, but food prices are also soaring. These prices are impacting schools too, but there is some good news.

While consumers see the immediate effects of rising prices, schools feel the majority of it months later.

"Well I think it's ridiculous,” said Felipe Merino. "I have a family and it's no fun seeing the expenses going up every time you go to the grocery store."

It's the reaction you'll hear from many people as food prices continue to climb.

"Well, I've seen milk go up tremendously,” Merino said.

According to the Department of Labor, milk prices have increased 26 percent in the past year. The rising costs aren't just getting passed down to consumers — schools are also feeling the impact.

"Well, the only place we've really seen increases at this point is our fresh produce,” said PHM Food Services Director Jill Riggs.

But because PHM food prices are based on competitive bids, they don't see an immediate impact like consumers do. The bulk of the food PHM buys is based on bids every 6 or 12 months.

"We saw about a 12 percent increase from fall to spring pricing in those items that we bid twice a year,” Riggs explained.

Based on a $1.5 million food budget each year, that adds up. PHM says the real shock will set in when they receive the next round of bids. They anticipate the bids will jump close to 20 percent.

"It will come when we open that bid packet in mid-May and we see what prices they put on it,” Riggs said. “And at that point we'll have to make decisions on, do we switch to one chicken patty to another or what are we going to do at that point?”

PHM says no matter how high the prices get, they won't sacrifice quality.

"It's important for us to hold the quality of our food because we make our money on participation,” Riggs said. “If the kids don't eat no money comes in."

Because they anticipated an increase this year, PHM raised their hot meal prices by 10 cents.

Other area schools have to be dealing with this problem too. Mishawaka schools operate much like PHM does. They say even if they see a 5 percent increase next year, that will translate into $45,000-$50,000 extra.