Normal Food Price Inflation In 2012


FOOD PRICES WILL BE GOING UP IN THE NEW YEAR
BUT U-S DEPARTMENT OF AGRICULTURE ECONOMIST RICKY VOLPE SAYS THE BIG FOOD PRICE JUMPS
OF TWENTY ELEVEN WON’T BE REPEATED IN TWENTY TWELVE.In 2011 we saw a year of fairly exceptional
food price inflation. Food at home, we know that prices went up on average four to five
percent. And in 2012 we’re looking at food at home prices to increase on average about
three to four percent, which is lower and is closer to more historically normal levels.BUT
SOME ITEMS WILL MAINTAIN THEIR HIGHER THAN AVERAGE RATES OF INCREASE FROM TWENTY ELEVEN
INTO TWENTY TWELVE, ESPECIALLY IN THE BREAD AND CEREAL AISLES.Breads and cereals, cereal
and bakery products; that’s one of the few categories where we’ll actually see higher
levels of inflation in 2012 than we saw in 2011. That’s because the outlook for wheat
is for pretty high prices.MEANWHILE, MEAT PRICES SHOULD RISE IN TWENTY TWELVE BECAUSE
OF SMALLER HERDS.Beef, cattle and hogs, pork. We’re projecting further inflation in 2012
and for them to be, again, two of the fastest moving categories in terms of price in 2012,
because the long term outlook for these food categories is for sustained inflation due
to low inventories.BOTH PRODUCE AND DAIRY SHOULD SEE NORMAL PRICE INFLATION OF THREE
TO FOUR PERCENT, BUT VOLPE SAYS BAD WEATHER NEXT YEAR COULD DRIVE FRUIT AND VEGETABLE
PRICES UP AT HIGHER THAN NORMAL RATES. FOR THE U-S DEPARTMENT OF AGRICULTURE, I’M BOB
ELLISON.

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