Food prices will be more expensive in 2012 than the year prior but there is some good news. Ricky Volpe is a food economist for the U-S Department of Agriculture and believes prices will not be going up at the record pace we saw in 2011.
Food prices were over five-percent higher at the end of 2011 than what consumers saw in 2010. Volpe does expect food prices in 2012 to increase about 3-and-a-half-percent over the course of the year. He says that is much more normal inflation rate.
Volpe says ideal weather conditions, higher than expected supplies or a decline in export expectations could cause prices to drop a bit but there is no reason to expect a cost decline at this time. However, he says one thing is for sure. The price at the grocery store for food items will not cost consumers less in 2012.