Hog farmers are sending more hogs to market this year, which ordinarily would pull down pork prices in the supermarket. That’s not the case this year, according to USDA economists, because consumer demand for bacon is bolstering pork prices overall.
In its monthly Food Price Outlook, the USDA said bacon prices increased 1.5 percent during September, at the same time that ham and pork chops declined in price. “Strong consumer demand for pork, particularly cuts such as bacon, will likely hold retail prices” to a 0.5-percent increase during 2017 from 2016 levels, despite a 5-percent increase in the pork supply,” said USDA.
Pork production is forecast to increase again in 2018, keeping pork prices in check. The USDA forecasts they will rise 1.25 percent. A month ago, the increase was expected to be 2 percent. The 20-year average is a 1.8-percent increase. Food inflation is estimated for 1.5 percent this year and 2 percent next year. If the forecasts prove true, it would mean a four-year run of below-normal annual increases in food prices.