Monday, May 2, 2011

Rising US pork, beef costs will contribute to 2011 food inflation

Rising pork and beef costs will continue to contribute to U.S. food inflation, which according to the U.S. Department of Agriculture will rise 3% to 4% in 2011, the most since 2008.
Pork prices may now rise 7.5%, increased 1% from March estimates. Beef estimates have been increased 2.5% from March, to 8%.
“I suspect when December arrives we will see increases of 4% to 6%” for the year in overall prices, said Bill Lapp, the president of agriculture-research company Advanced Economic Solutions. “The pressure on food prices is clearly on the upside." According to the Bureau of Labor Statistics, food costs rose 0.7% in March, capping a 2% gain for the first quarter of 2011.
Hog futures increased 25% for the year as of April 21, on rising export demand, while cattle futures were up 6.3%.

No comments:

Post a Comment