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Drought of 2012 having less impact on 2013 food prices: USDA
Story Date: 8/29/2013
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Source: Chris Scott, MEATINGPLACE, 8/28/13
Beef and poultry prices moderated along with price inflation for all food during 2013, an indication that last summer’s drought had less of an influence than originally feared, according to data from the U.S. Dept. of Agriculture’s Economic Research Service (ERS).
The ERS reports that the Consumer Price Index (CPI) for all food increased by 1.4 percent between July 2012 and July 2013, and just 0.1 percent between June 2013 and last month. The agency adds that one of the largest food categories to experience significant month-to-month price declines is poultry — 0.7 percent — even though poultry prices remain high for the year because of stronger demand and high feed costs. Beef and veal prices are already at record highs for several products: up 1.3 percent July to July, but just 0.5 percent between June and July.
The potential inflationary impact of the 2012 drought on food prices was offset by lower exports of U.S. agricultural products, a stronger U.S. dollar, low inflation for energy prices and lower prices for commodities not affected by the drought, the agency says. The ERS projects that food prices will increase by between 1.5 and 2.5 percent for all of 2013, a lower figure than the one posted in 2012.
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