Food-At-Home Price Inflation Nears USDA Projection

Through the first 10 months of 2008, food-at-home inflation stood at 6.3 percent, approaching the high end of USDA’s projection of 5.5 percent to 6.5 percent for the entire year, according to The Food Institute.

In 2009, prices are forecast to increase between 3.5 percent and 4.5 percent for food-at-home, a bit less than projected one month ago, but still well above the minimal food inflation seen earlier this decade. If realized, food-at-home prices will rise more than 10 percent in just two years by the end of 2009.

Contributing to the decline in projected 2009 prices were reductions in price forecasts for beef, pork, poultry and seafood due to lower grain and feed prices.