August 9, 2018
The U.S. Department of Agriculture forecasts that retail food prices will increase below the historical average this year.
Fats and oils, fresh vegetables, pork, nonalcoholic beverages, dairy products and processed fruits and vegetables could potentially decline in price. But the cost of prices for beef and veal, poultry and eggs are expected to increase.
Estimates from the agency’s Economic Research Service offer a prediction that the overall change will be no more than 1 percent, which is below the 20-year average of 2.1 percent.
Due to deflation in 2016 and 2017, expected price increases would still leave overall price levels in 2018 lower than in 2015. These forecasts are based on an assumption of normal weather conditions throughout the remainder of the year.
The productivity of U.S. farm families provides an abundant supply of food and fiber, making nutrition available to everyone.
According to the USDA, consumers in this country pay, on average, less than 10 percent of their disposable incomes on food – the lowest figure in the world.
For more information, visit https://www.ers.usda.gov/data-products/food-price-outlook/.