Source: Michael Fielding, MEATINGPLACE, 7/25/11

Beef prices decreased 0.7 percent in June but are 8.2 percent above last June, with steak prices up 4 percent and ground beef prices up 11 percent, according to USDA’s latest report on food inflation.
Pork prices increased 0.5 percent in June and are 8.5 percent above last June’s level.

Poultry prices increased 0.3 percent in June and are 3 percent above prices last year at this time, with chicken prices up 2.1 percent and other poultry prices (including turkey) up 6.6 percent.

Due to higher input costs, beef and pork prices are now significantly higher than in 2010. The beef and pork industries also downsized their inventories during the high price inflation of 2007-08, and the supply of these commodities remains low relative to demand.

These factors are reflected in USDA’s forecasts—beef prices are now projected to increase by 7 to 8 percent and pork prices by 6.5 to 7.5 percent in 2011.

The CPI for all food increased 0.2 percent from May to June 2011, rose 0.4 percent from April to May 2011, and is now 3.7 percent above the June 2010 level.

The food-at-home CPI increased 0.1 percent in June from May and is up 4.7 percent from last June, while the food-away-from-home index was up 0.3 percent in June from May  and is 2.3 percent above last June.

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