The rate of growth in fresh fruit and vegetable prices in the US is expected to decline by 1 per cent to 2 per cent this year, according to a recent USDA report.
Overall, retail food prices are increasing at a slower pace than expected, the USDA said, as the recession curbs demand for items including fresh produce and pork.
“Pressure on retail-food prices has subsided, resulting in low-to-moderate food price inflation in 2009,” explained Ephraim Leibtag, a USDA economist.
Food costs are anticipated to rise by 1.5 per cent to 2.5 per cent in 2009, the USDA said, which is down on the October estimate of 2 per cent to 3 per cent. Forecasts for 2010 remain unchanged at a 3 per cent to 4 per cent increase.
Total food prices are anticipated to start increasing over the coming months, according to Mr Leibtag, as energy costs start to grow with the economic recovery.
Despite the slowdown, however, nearly three-quarters of US shoppers claim they are more concerned about the cost of groceries than they were six months ago, according to a new study from Health Focus International.
The report indicated that 74 per cent of 1,000 surveyed shoppers were more worried, while just 1 per cent were less concerned.
“The extended economic uncertainty has had a very profound and deepening impact on consumer attitudes and behaviour,” said Barbara Katz, president of Heath Focus International. “The resulting practice of shoppers using cost cutting strategies could have a lingering impact, irrespective of whether or not economic conditions improve.”
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