Food prices in the US are predicted to increase by 2-3 per cent this year due to higher food commodity and energy prices, according to projections released in the 2011 Consumer Price Index (CPI) by the USDA’s Economic Research Service.
That price jump, which is expected at both food retailers and restaurants, comes on back of the 0.8 per cent increase in all food prices during 2010 – the lowest food inflation rate since 1962, the report said.
Within the category, food-at-home prices (grocery store) increased by 0.3 per cent last year, while prices for food-away-from-home (restaurant) rose 1.3 per cent – the lowest annual increases since 1967 and 1955 respectively.
In the fresh fruit category, prices fell in five of the past 11 months, leading to an overall fresh fruit price decline of 0.6 per cent in 2010.
However, the USDA said recent price increases imply that fruit prices will return to positive inflation rates in 2011.
Indeed in December 2010, fresh fruit prices increased by 3.7 per cent due to rises in other fresh fruit prices, according to the agency’s data.
As a result, the fresh fruit index is now up 3.1 per cent against the same time last year, with apple prices up 3.8 per cent, banana prices up 2.9 per cent, citrus fruit prices up 9.1 per cent, and other fresh fruit prices up 1.3 per cent.
The fresh vegetable index also increased by 2.5 per cent in December, the report indicated.
Currently fresh vegetable prices are up 1.2 per cent over this time last year, with potato prices up 5.4 per cent, lettuce prices down 7.4 per cent, tomato prices down 10.5 per cent, and other fresh vegetable prices up 6.9 per cent.
In 2009, total expenditure for all food consumed in the US reached US$1.18bn, a 1.2 per cent increase from US$1.17bn in 2008, according to the USDA.
Spending on food away from home accounted for 48.6 per cent of the total, while spending on food at home represented 51.4 per cent.
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