After the first of the year Nebraskans may have to make another adjustment in their grocery budget. USDA Food Price Analyst Ricky Volpe released his first food cost prediction for 2013. The report shows food in grocery stores will likely increase 3% to 4%. Volpe predicts restaurants will increase prices between 2 1/2 to 3 1/2%. The average inflation rate is 2 1/2 to 3 1/2%.
USDA is reporting in 2012 the price for beef will increase 5%. Cereal, milk and bread prices will likely increase 4%.
Volpe says one of the reasons for the above average inflation rate is because of the continuing drought. He says corn, soybean and other commodity prices continue to climb.