Food Price Increases To Slow Down


IT’S GOOD NEWS AND BAD NEWS ON NEXT YEAR’S
FOOD PRICES FROM THE U-S DEPARTMENT OF AGRICULTURE’S ECONOMIC RESEARCH SERVICE.It’s bad news
in that prices are not going to be decreasing. But it’s good news in that consumers should
not expect prices to increase with the same spike, with the same sharpness that we saw
in Twenty Eleven. In Twenty Twelve we’re looking for food price inflation to continue,
but we are projecting the overall rate of food price inflation to slow down in Twenty
Twelve and to approach more historically normal rates.AND VOLPE SAYS THOSE HISTORICALLY NORMAL
RATES OF INCREASE ARE BETWEEN THREE AND FOUR PERCENT. AT THIS POINT FORECASTS FOR 2012
ARE VERY MUCH SUBJECT TO CHANGE, BUT VOLPE SAYS E-R-S IS WATCHING THE MEATS SECTION.Particularly
beef and pork because they’ve seen extraordinary price inflation in Twenty Eleven. In fact,they’ve
pretty much led the charge among food categories. And we’re projecting beef and pork prices
to remain at or near historic highs.AS FOR THE REST OF TWENTY ELEVEN, VOLPE SAYS BREAD
AND CEREAL PRICES WILL RISE MORE THAN HAD BEEN EXPECTED.We’ve revised our forecast
for cereals and bakery products, which includes bread, upwards to four and a half percent
over Twenty Ten levels. FOR THE U-S DEPARMENT OF AGRICULTURE, I’M
BOB ELLISON.

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