Food costs are expected to rise 2 percent to 3 percent in 2011, according to the Des Moines Register. It would be the largest jump since the 5.5 percent increase in 2008, the last year there was a big jump in the price of corn and other commodities. The price jump in 2008 brought a torrent of criticism on federal biofuel policies.
For 2010, food costs are expected to be up just 0.5 percent to 1.5 percent, the lowest increase since 1992, USDA economists say.
Meat and dairy products are expected to lead the way in higher prices next year, although consumers also will be paying up to 3.5 percent more for fresh fruits and vegetables.
The economists estimate that the price of pork will be 3 percent to 4 percent higher in 2011, while beef prices should rise 2.5 percent to 3.5 percent, according to the USDA. Dairy prices will rise 4.5 percent to 5.5 percent in 2011.
Source: Des Moines Register