Food prices expected to stay high through next year, USDA says
The price of food items such as beef, pork and dairy products is expected to stay high through 2013, according to a U.S. Department of Agriculture forecast released Friday.
The Midwest drought, the worst in decades, has driven up corn and soybean prices, which, in turn, is causing retail food prices to rise.
The food price outlook, compiled monthly by the USDA, was largely unchanged from the month before, forecasting the price of all food to rise 2.5% to 3.5% through the end of the year.
Next year, the department predicts food prices will rise by as much as 4% as the effects of the drought become more pronounced on the nation’s food supply.
For many food items, the report’s forecasts were largely unchanged but still elevated.
•Beef and veal will rise 3.5% to 4.5% in 2012 and by as much as 5% next year.
•Pork will rise 2% to 3% this year and up to 3.5% next year.
•Dairy products will rise 3% this year and 4.5% next year.
