Food prices forecast up in 2011

The CPI for all food increased 0.9 percent from December 2010 to January 2011, increased 0.1 percent from November to December 2010, and is now 1.8 percent above the January 2010 level. The food-at-home CPI increased 1.4 percent in January 2011 and is up 2.1 percent from last January, while the food-away-from-home index was up 0.2 percent in January 2011 and is 1.5 percent above last January. Recent food commodity price increases, along with January retail price increases, have pushed ERS's forecasts for overall food inflation upward for 2011. Increased inflation for beef and pork products is expected in the first half of 2011, as reflected in ERS's forecasts-beef prices are now projected to increase 3.5 to 4.5 percent and pork prices 5.5 to 6.5 percent in 2011. Dairy prices were up 0.1 percent in January and are 1.7 percent above the January 2010 level. Egg prices decreased 1 percent in January 2011 (following two months of sharp increases in November and December 2010), and egg prices are now 4.5 percent above the January 2010 level. This table is from the ERS briefing room, Food CPI and Expenditures: Analysis and Forecasts of the CPI for Food, published February 24, 2011.