SAN FRANCISCO — Consumers should continue to see low prices at the grocery store, based on a forecast from the U.S. Agriculture Department, which expects food inflation in 2010 to be at the lowest level since 1992.
Price spikes in the futures market for agricultural commodities — ranging from wheat to hogs — have been stoking fears food makers will raise prices to cover manufacturing costs. But the USDA lowered its food price forecast late Wednesday.
The USDA is calling for food prices at supermarkets and other retailers to rise 0.5% to 1.5% this year. That's down from 1.5% to 2.5% increase it forecasted June 25. In 2009, so-called food-at-home prices edged up 0.5% after rising 6.4% in 2008 and 4.2% in 2007.
Consumers can expect to pay more for meat at the store.
Source: MarketWatch
