How More Ethanol Means Pricier Pizza

June 27, 2007 — -- Milk may do a body good, but these days it's probably your wallet that gets the big workout.

Dairy products have become more expensive, causing prices to rise for some of America's favorite foods, from ice cream to chocolate to pizza.

Over the past two months, the average price for a gallon of whole milk is $3.26, up 19 cents. And that's causing an economic chain reaction.

Among those hit the hardest are people like John Esposito, who owns Sal's Pizza in New York. A slice used to cost $2.15, but he's ready to raise the price to $2.30. Esposito anticipates he'll be charging $2.40 a slice soon.

"It might go even higher than that," he said.

Dairy prices are rising because the price of corn is going up, thanks to greater demand for the corn-based fuel ethanol.

Some experts predict milk prices could rise to $4 a gallon by year's end.

"It may well be that what we're learning is the widespread use of corn for ethanol may not be in the best public interest," Tom Spreen, an economics professor at the University of Florida told ABC News.

There's no sign of relief on the horizon, either. Corn prices are expected to rise another 50 percent by year's end.

So if you want cheaper pizza, maybe it's time to buy a cow?