Food prices will continue to rise at a sharply lower rate than overall inflation – this year and next, according to The Food Institute, Elmwood Park, NJ-based trade association.

In 2001 overall food prices are forecast to climb between 2.0-2.5% compared to an overall inflation rate of 2.9%, according to data from the U.S. department of agriculture. And, through the first eight months of 2000, food was climbing at an annual rate of only 2.1% versus a forecasted all item increase of 3.2%.

“The share of consumer disposable personal income spent for food at-home has shrunk dramatically over the past 20 years,” said Food Institute President, Rick Pfaff. ” In 1978, the typical family spent 9.2% of their disposable income for food at-home. By next year that share is expected to drop to only 6.2%. Away-from-home food spending,” added Pfaff, “has continued to climb, but will still account for only 4.2% of consumer disposable income in 2001, comparable to the 4.3% share spent for eating out in 1978.”

The complete “Food Price Forecast, 2001” can be found at the association’s website,

About the Food Institute
Founded in 1928, The Food Institute is a non-profit, membership-based information and research association. Members, including 4,000 executives in some 2,200 companies from over 40 countries worldwide, span the entire food distribution system.

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