AGRICULTURE

Modestly Higher Food Prices Seen for ‘96: Food prices will rise modestly in 1996 despite tight grain supplies, the U.S. Department of Agriculture said Thursday, but the cost of fresh fruits and vegetables will surge. Food prices are likely to climb 2% to 4% during the new year, with abundant supplies of meat holding down overall food price inflation, the department said. Some analysts disagreed, projecting increases of 4% to 5% because of this year’s small grain crops. Americans spent about half their food dollars at restaurants and fast-food outlets this year, the USDA said in its first forecast of 1996 food costs. Fierce competition among eateries “will keep price increases moderate in 1996,” the department said.