Consumer Price Index for Food
Inflationary pressures are expected to be moderate, given the outlook for commodity prices, animal inventories, and ongoing export trends.
The food, food-at-home, and food-away-from-home Consumer Price Index are expected to increase 2.5 to 3.5 percent over 2013 levels. This forecast is based on the assumption of normal weather conditions; however, severe weather events could potentially drive up food prices beyond current forecasts. In particular, the ongoing drought in California could potentially have an effect on fruit, vegetables, dairy, and egg prices.
At the grocery store, consumers have probably noted an increase in the cost of milk, pork and beef. These costs are associated with supply and demand.