The US Department of Agriculture has said that food prices in the US will increase by an average of 5% this year – the largest price rise since 1990.
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“With prices rising swiftly in the first half of the year, we’ve had to revisit our initial estimates. We now expect food inflation to sit at about 5% this year,” a spokesperson for the USDA told just-food today (20 May).
Bread, cereals and other bakery products will be leading the way in price hikes, as flour and other commodity prices rise. The USDA said that the price of baked goods could jump by as much as 8% this year.
Sharp price increases have also been predicted for eggs, fats and oils.
Although meat and fish prices are not expected to increase significantly this year, the USDA said that they will rise sharply in 2009 as high feed prices start to limit production.
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By GlobalDataThis marks the second year of high food inflation and the USDA has confirmed that it expects this trend to continue into next year.
