Some more positive news is out in regards to food price inflation.
Prices are still expected to increase over the next decade, but the increases are not going to be as bad moving forward as they are right now.
The Agriculture Department’s new report was recently released on agriculture trends for the next ten years.
Report Coordinator David Stallings says last year’s drought is what has driven current prices so high.
“Right now we are forecasting a rate of inflation for food prices at about 3.3% for 2013, but after that food prices will moderate and not increase nearly as fast”, said Stallings.
Stallings explains why that is the case.
“We don’t see those large increases in energy prices, transportation costs, and meat and commodity prices, which help drive that rate of inflation higher”, said Stallings.
He says higher food prices could reverse the current trend of people buying more groceries and cooking at home.
He expected to see a comeback in people eating more take-out type of food over the next few years.