How Will 2012 Food Prices Affect Your Wallet?

Wondering how food prices will affect your wallet in 2012? This is the Northwest Farm and Ranch Report and I'm KayDee Gilkey. Today's report next.

For 2012, food price inflation is not expected to have the big price jumps that happened in 2011, but rather is projected to be slightly above the historical average for the past two decades.

USDA Economist Ricky Volpe gives the 2012 food price inflation forecast which is a bit better news than 2011's which was about 4.6 percent increase for grocery store purchases or food-at-home costs.

Volpe: "For 2012 right now, we are looking at all food to increase 2.5 to 3.5 percent with food-away-from-home prices increasing 2 to 3 percent and food-at-home 3 to 4 percent. That 3 to 4 percent range is important because the historically normal level --what we’ve come to expect over the last 20 years or so-- is just under three percent for food at home. That means in 2012 we are looking at a year where food inflation prices is going to be slightly higher than historically normally but definitely more close to normally than what we saw in 2011.”

Volpe mentions bread and cereal as well as beef and pork as the food categories that might continue to have higher levels of inflation in the new year. Food price levels in 2012 will hinge significantly on several macroeconomic factors such as weather conditions, fuel prices, and the value of the U.S. dollar.

I'm KayDee Gilkey on Northwest Ag Info net.