The Cost Of The Cold

For everyone who thought this winter couldn't get more costly, get ready for round two, coming soon to a produce aisle near you, as the effect of the cold weather starts hammering at the nation's crops, CBS News Correspondent Cynthia Bowers reports.

"We're looking at prices 30 to 40 percent higher for some particular items," said Chuck Pedrick of Whole Foods.

Basics like beans are now selling for $1.99 a pound, and the price of strawberries has mushroomed to $6.99, all because of disastrous weather in Florida. Over the last three months, more than $260 million of crops have been burned by frost or lost to floods.

The cost of the cold is adding up to hard times in a number of states. Nearly a month after ice storms hit southern Arkansas, power is still out in some places and the state has taken a $70 million hit just to keep roads passable. For the first time ever, homeowners in the Northeast are expected to pay more than $1,000 to keep their homes warm this winter.

And with natural gas prices burning out of control, insulation is a suddenly a hot commodity. One insulation installer estimated that the number of jobs he gets daily jumped from eight to 15.

The high cost of heating isn't just hurting homeowners; businesses are getting soaked as well. Jim Calucci runs the Russian bathhouse in downtown Chicago, but it's this month's gas bill making him sweat.

"In the winter last year my bill was $6,500," he said. "This year its almost 15,000."

Economists say its hard to put a dollar figure on how much this wicked weather is costing, but there's no doubt it's put an added chill on an already-cooling economy.

"Retail spending has been very weak, auto sales have been very weak and consumer spending is two-thirds of all economic activity," economist Alan Skrainka said.

It is hoped prices will stabilize by spring, but if freezing temperatures return in force, the effects of this winter will likely be felt long after the weather warms up.