USDA: Food Prices Increase to the Lowest Levels Since 1992

Minimal price growth comes despite rising prices for commodities.

August 30, 2010

WASHINGTON - The U.S. Department of Agriculture said last week that it expects food prices to increase this year at the lowest rate since 1992, the Associated Press reports.

The figure represents a revised estimate for the agency, a reflection of a downward-adjusted estimate for the consumer price index for food, which it said would increase only 0.5 to 1.5 percent this year, compared to its earlier expectation of a 1.5 to 2.5 percent increase.

"Although global economies have recovered somewhat from the 2008-9 recession, world economic activity remains below pre-recession levels, resulting in overall food price inflation ... below historical averages," the agency said.

If the agency's forecast holds true, the food price increase would be the lowest since 1992, when prices rose 1.2 percent.

The minimal price growth comes despite rising prices for commodities such as sugar, wheat, and coffee.

The USDA said prices for food consumed at home will increase at the same rate, while food eaten at restaurants is expected to rise between one and two percent.
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