USDA forecasts prices for all food will rise 3.2% this year, down from the expected 3.4% increase last month. The monthly price decrease was driven by food-at-home (grocery) prices, which are anticipated to rise 2.7%, down from the 3.3% gain forecast last month. Food-away-from-home (restaurant) prices are projected to increase 3.7%, up from 3.4% previously.
USDA projects a 57.6% surge in egg prices, up sharply from the 41.1% jump projected last month, due to impacts from the outbreak of highly pathogenic avian influenza (HPAI) that has sharply reduced layer flocks and egg production. However, the forecast range is huge at 31.1% to 91.5% amid extreme supply uncertainty tied to the HPAI situation.
USDA projects price increases of 5.2% for beef/veal (up from 3.2% last month) and 1.5% for pork (up from 1.2%) this year. Poultry prices are expected to decline 0.4% (down from no change) from year-ago.
