In a monthly update, the Agriculture Department stuck to its forecast of a 3 pct annual increase in food prices this year. That’s close to the 2.8 pct avg since 1990 but the highest since 2011. USDA says food inflation will be led by beef, poultry, seafood and fresh fruit, all up by 4 pct. Beef is at record or near-record prices in grocery stores.
“Due to ongoing drought conditions in California, produce prices have recently come under a great deal of scrutiny. Fresh vegetable prices, however, fell for the second consecutive month, decreasing 2.1 percent from February to March. Vegetable prices are down 4.6 percent from this time last year. Overall, the California drought has not yet had a discernible impact on national prices for fruit or vegetables,” said the food price report.