Food price inflation may be the lowest since 1992

U.S. food prices are forecast to rise at their lowest rate since 1992, the Agriculture Department said Wednesday, showing the recent surge in agriculture prices for everything from hogs to wheat so far has not been felt at the dinner table.

The USDA revised its food price prediction to an increase of 0.5% to 1.5% in 2010 from its forecast in late July that called for a rise of 1.5% to 2.5%.

The increase could be the lowest since food prices rose 1.2% in 1992.

“Although global economies have recovered somewhat from the 2008-09 recession, world economic activity remains below pre-recession levels, resulting in overall food price inflation in 2010 remaining below historical averages,” the department said.

Commodity prices have soared in recent months, stoking fears of a repeat of 2008 when rising food prices led to hoarding, bread lines and food riots around the world.

Wheat reached a two-year high this month after a record drought in Russia and crop problems in other countries. Livestock prices also have risen because of smaller herds and active buying of futures by funds, with pork prices hitting a record high Wednesday for a third straight day.

Meat prices are forecast to rise 2% to 3%, with much of the increase attributed to pork, which is estimated to rise 3% to 4%. The forecast for eggs is between unchanged and down 1%, while dairy products are predicted to rise 1.5% to 2.5%.