The United State Department of Agriculture has some good news to report on food price inflation forecasts.
The latest inflation rates had dairy products between 2.5% to 3.5% after being originally predicted to be around 3.5% to 4.5%.
Cereals and Baked Goods dropped a half a percentage point to 2% and 3% respectively.
USDA Economist Ricky Volpe says despite some crazy weather so far in 2013, that food price inflation isn’t really being impacted by the weather.
“If this is evidence that the US Supply System and the Global Food Supply chain is better positioned to absorb these events and maintain modest food price inflation, then that is good news for consumers”, explained Volpe.
Volpe said in a report in early May, that the current food price inflation forecasts should remain true for the remainder of the year, barring any kind of severe drought conditions resurfacing in the Midwest states.