In a recent blog post about the growing number of chronically hungry in the world, I mentioned the rise in commodity prices from 2006 to 2008 as one culprit. Those spiking commodity prices also effected consumer food prices in the U.S., which rose sharply in 2007 and 2008.
Commodity futures have again been on the rise, as rising production costs suggested an impending increase in prices for consumers. The USDA was forecasting a 1.5-2.5 percent rise in food prices for consumers, but a new estimation lowers it to 0.5-1.5 percent, according to a report from The Wall Street Journal‘s MarketWatch. The announcement also quells fears of food inflation. (The predictions were not so rosy earlier this year.)
While the USDA’s forecast means we can continue to expect low prices at the grocery store, prices for some foods will increase more than the average:
“Consumers can expect to pay more for meat at the store. … In addition, prices for sugar and sweets could be up as much as 3%, dairy products up to 2.5%, and cereals and bakery products as much as 2%, the USDA reported.”