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«AgroInvest» — News — U.S. food inflation expected to rise up to 4 percent in 2011

U.S. food inflation expected to rise up to 4 percent in 2011

2011-04-26 18:41:40

The U.S. food inflation is expected to rise up to 4 percent this year, driven by surging pork and beef costs, the U.S. Agriculture Department (USDA) said Monday in a report.

The Consumer Price Index (CPI) for all food is projected to increase 3 to 4 percent in 2011, the most since 2008. Food-at-home (grocery store) prices are forecast to rise 3.5 to 4.5 percent, while food-away-from-home (restaurant) prices are forecast to increase 3 to 4 percent, said the report.

The prices for meat poultry and fish will jump 5 to 6 percent, led by beef, which may climb 8 percent, and pork, which could gain 7.5 percent. This will keep pressure on U.S. food inflation, said the USDA.

"Although food price inflation was relatively weak for most of 2009 and 2010, cost pressures on wholesale and retail food prices due to higher food commodity and energy prices, along with strengthening global food demand, have pushed inflation projections for 2011 upward," said Ephraim Leibtag, the USDA's food-inflation economist.

Meanwhile, the CPI for all food increased 0.7 percent from February to March 2011, which was consistent with U.S. Labor Department's data released earlier this month.

With respect to 2010, the all-food CPI rose 0.8 percent, the lowest food inflation rate since 1962, said the department.

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