Normal Food Price Inflation for 2014

Normal Food Price Inflation for 2014

It will cost more at the grocery store this
year, but not a whole lot more according to U.S. Department of Agriculture economist Ricky
Volpe. We generally expect grocery store prices to increase maybe around two point seven or
two point eight percent every year and the current outlook for 2014 really catches that
right on the button. One area where shoppers will keep seeing high prices will be in the
beef aisle. Volpe says that’s mostly because cattle herds have gotten smaller since 2011.
We still have the number of cattle in the U.S. that is comparable to where we were in
the 1950s and of course we have a much larger population and we’re exporting a lot more
so consumers should not expect a huge price increase, but certainly for these very high
prices to stay and even inch up a little bit more. Now Volpe adds that a wild card influence
on food prices in 2014 will be if wholesalers and retailers decide to widen what have been
narrow profit margins in recent years. There’s nobody in the food supply chain who can permanently
absorb losses or reductions in their margins so that should pick up at some point in 2014
and should translate into a quickening of the pace of food price inflation over at least
what we saw in 2013. In Washington, D.C., for the U.S. Department of Agriculture, I’m
Bob Ellison.

5 thoughts on “Normal Food Price Inflation for 2014

  1. Are there audio-descriptions available for your videos (for accessibility for persons who are blind or sight-impaired)?

  2. In Feb. 2014, Ribeye steak was at $9.48 lb. In Mar. 2014, Ribeye steak is now $14.19 lb. That's a lot more than 2% …

  3. Wow. I minored in Foods and Nutrition in college. We frequently used USDA studies and information in our research. This video just blew any credibility the USDA previously held in my eyes out of the water.
    However, my compliments to the guy on camera for being able to say it with a straight face. I'm so glad, for his sake, there was no lightning around when this was recorded.
    Very disappointed in the intentional misinformation presented in this video. 

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