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USA retail food prices are expected to increase by 3-4% in 2013
December 14, 2012
Over the long term we should assume that commodity prices will continue to increase. Most agricultural economists would agree with this because of multiple factors. The diversion of feedstocks into biofuels, population growth, climate change, weakening US dollar, rising meat and dairy consumption, and rising energy costs.
USA retail food prices are expected to increase by 3-4% in 2013
The economist, Richard Volpe, from the USDA says that sharp jumps in corn and soy prices have hit the poultry, beef, and veal industry are starting to be felt in the supermarkets. Prices increases of 5 to 6.5% are expected. Average retail food prices inflate each year by an average of 2.5 to 3%. 2013 food price increases are expected to be higher than average.
In many production areas around the world the weather has just been too hot, wet, or dry.
The erratic weather is the most concerning issue right now. Wheat, for instance, is a very weather dependent crop. If we don't get average rain between now and March, we will have a very poor winter wheat harvest in the southern plains of the USA.
