The Associated Press August 25, 2010, 7:57PM ET

USDA says food prices rise to be 1 of the lowest

Food prices are expected to rise this year at the lowest rate since 1992, the U.S. Department of Agriculture said Wednesday.

The USDA revised its expectations, saying the consumer price index for food is projected to increase 0.5 to 1.5 percent in 2010 compared with its earlier expectations of a 1.5 to 2.5 percent increase.

"Although global economies have recovered somewhat from the 2008-9 recession, world economic activity remains below pre-recession levels, resulting in overall food price inflation ... below historical averages," the agency said.

The low price growth comes despite recent soaring prices for certain commodities such as sugar, wheat and coffee. If this holds true, it would be the lowest growth since 1992 when food prices rose 1.2 percent.

The USDA anticipates prices for food eaten at home will increase at the same rate while food eaten away from home, such as at restaurants, is expected to increase 1 to 2 percent.


BW Mall - Sponsored Links

Buy a link now!