CHICAGO—The U.S. government raised its forecast for retail dairy prices but left its overall food-inflation projection for the year unchanged.
The U.S. Department of Agriculture held its food price-inflation forecast steady at 3% to 4% for 2011. The monthly analysis of the consumer-price index for food tracks retail prices for a range of household staples, from bakery products to beef to vegetables.
Officials said the overall forecast didn't increase because higher prices for dairy products were offset by lower prices for other goods. The USDA didn't adjust the forecast range for any category except dairy. Yet the government did note pork prices slipped 0.3% last month, while its fresh-vegetable index dropped 3.5%.
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