Beef, pork and egg prices rising higher than expected | Food and Environment Reporting Network

The Agriculture Department forecasts sharply higher beef, pork and egg prices this year although its overall estimate for U.S. food price inflation is unchanged at 3 percent. In its Food Price Report, USDA said it now now expects a 6 percent increase in beef prices for the year, with pork up 3.5 percent and eggs up 5.5 percent.

A month ago, the expectation was beef would notch a 3.5 percent increase for 2014, pork up 2.5 percent and eggs up 3.5 percent. Beef, pork and eggs account for 7.2 cents of each food dollar. Retail beef prices are at record highs.

“Pork exports have increased, and domestic demand for pork is also up due to record-high beef prices and consumer perceptions of pork as a close substitute for beef,” says USDA, and larger exports are helping to drive up egg prices. “Overall, the California drought has not yet had a discernible impact on national prices for fruit or vegetables.” They are forecast to rise by 3 percent this year.