Higher Food Prices Projected Through August

Articles
June 30, 2011

Higher Food Prices Projected Through August

The Food Institute projects that retail food prices will move higher through August of this year, based on recent trends in wholesale food prices. “After almost 18 months of incurring higher prices at the wholesale level, the nation’s retailers have started passing along those increases to consumers,” commented Brian Todd, president and CEO of the Food Institute. Retail food prices are projected to increase by about 4.5% by August compared to a year earlier when retail food price inflation was less than 1% based on current trend in wholesale food prices according to The Food Institute’s analysis and projection.

The Food Institute projects that retail food prices will move higher through August of this year, based on recent trends in wholesale food prices.  “After almost 18 months of incurring higher prices at the wholesale level, the nation’s retailers have started passing along those increases to consumers,” commented Brian Todd, president and CEO of the Food Institute. Retail food prices are projected to increase by about 4.5% by August compared to a year earlier when retail food price inflation was less than 1% based on current trend in wholesale food prices according to The Food Institute’s analysis and projection.

USDA is projecting overall food at home prices this year will increase as much as 4.5% and the Food Institute’s projection through August bears that out. 

The Food Institute has been tracking wholesale and retail prices for decades and this month marks the launch of the Food Institute’s new FI Price Track that will be released around the 20th of each month, projecting where consumer food prices are headed in the months ahead. Using data from the Consumer Price Index reflecting retail prices and the Producer Price Index as indicators, each month members of The Food Institute will project where we expect retail food prices will be three months beyond the latest government data figuring in the approximate three-month lag for retailers to pass along wholesale increases. 

For the past two years, retail food prices have been nearly flat and even if retail prices do reach that 4.5% inflation rate it would still be less than food price advances in 2008, noted The Food Institute.

While several items appear to be heading upward, such as coffee, milk and butter, center of the plate beef and pork prices appear poised to move down from highs of earlier this year.  For more information about specific items the Institute covers, please contact Rob Kraly at rob.kraly@foodinstitute.com.

For more about The Food Institute, go to www.foodinstitute.com.