Grocery Prices Going Up
Been to the grocery store lately. Prices have been going up just like some USDA economists have been saying. They have predicted a rise of 2 1/2 to 3 1/2 percent. USDA economist Annemarie Kuhns.
KUHNS: And this is really returning food price inflation to a range that is closer to the 20-year historical norm.
One place that prices have been going up has been in the fresh fruit department and they could go up as much as 4 1/2 percent.
KUHNS: Large portions of the citrus crop in southern California were not really affected by the drought yet but were damaged by a deep freeze we saw in December. And actually this year Florida is on track to produce its lowest orange crop since the 1990's.
Kuhns also says beef prices are continuing their rise and won't be coming down anytime soon.
KUHNS: Beef and veal prices rose again last month increasing 1.9% since February and are now up 7.4% since the same time last March. So these figures really reflect an increase in exports. We have also a decrease in imports and they are also indicating that the cattle herd has continued to contract. That's one of the main factors and also it's a signal to us that the record high beef prices in the supermarket are here to stay for at least the coming months.
That's today's Line On Agriculture. I'm Greg Martin on the Ag Information Network.