Outlook 2008 & 2009
USDA Lifts Retail Price Projections For Several Items
USDA's Economic Research Service again upped it projection of all food, and food-at-home this year, with food-at-home prices now seen rising as much as 6,.5% for the entire year, and overall food prices up as much as 6%. Only the food-away-from-home projection remained unchanged from last month.
What's driving those advances? We've bolded those items that have been lifted since the July projection in the table below. Beef and veal prices, which are seen jumping as much as 7% in 2009, are now seen climbing as much as 3.5% this year as well. Apparently producers, and retailers, are passing along higher production and transportation costs as the supply comes into closer balance with demand after exceeding it significantly previously.
To the dismay of many restaurant chains, the projection form fats and oil rose again this month and prices for 2008 are now seen being up as much as 14% over 2007. That's just slightly below the top end 14.5% increase seen for eggs. Dairy products are also a cause for concern, being up as much as 9% this year, and expected to be followed by another 4% to 5% gain next year.
The full analysis and projected retail food category price changes are available only to Food Institute members. Members login now.
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