Food inflation will be lower in 2014 according to the U.S. Department of Agriculture’s Economic Research Service (ERS). Food prices will be 2.25% to 3.25% higher this year compared to 2013.
ERS said that commodity prices, animal inventories and ongoing export trends were the reasons for lower inflation estimates. The latest estimates saw an increase in inflation for pork and eggs but lower for vegetables and cereal and bakery products.
Pork prices are estimated to be 9.9% higher than last year and eggs are 6.2% higher. Food inflation has averaged 2.6% over the last 20 years.