Consumer Price Index for Food

Consumer Price Index for Food

The United Sates Department of Agriculture Economic Research Service (ERS) revises the food price forecast on a regular basis. The ERS forecasts that food price inflation will return to a range closer to the historical norm. Retail food prices were flat in 2013.

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.