Food price inflation: Up or down in 2011?
This year, the U.S. Department of Agriculture forecasted the lowest consumer price index rise of food prices since 1992. However, due to expected higher food commodity and energy prices, this trend is not likely to continue. With that in mind, the USDA is predicting an inflation of food prices in 2011.
- Though 2010 saw a low level of inflation, some food products were still strongly affected—beef prices went up 5.7%, pork was up 10% and eggs were 11.3% higher in cost.
- The food consumer price index saw six consecutive months of decline from 2009-2010—a first since 1959.
- The USDA saw food prices rise only .5% to 1.5% in 2010, the lowest consumer price index rise in 18 years.
- Though inflation has been weak for the past few years, the USDA expects a 2% to 3% increase in food price inflation in the latter part of 2010 and the early months of 2011.
Source: Decision News Media SAS, October, 2010