I will point out that this example of inflation seems to be mostly just price gouging by the big brands.

I've seen a similar price increase in the branded cereals, so I am not disagreeing with you in that sense.

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However, the store brand cereals, which are cheaper, haven't really gone up at all. At this point the branded product is more than double the unit cost of the store/no-name brand version in my local stores.

This suggests to me that it's not an actual increase in the cost of producing the product. If it was driven by commodity/input/manufacturing cost prices we should be seeing price pressures coming through in the cheapest cereals.