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Consumer Price Index for food 3 to 4 percent higher

Looks like the days of minimal food price inflation have passed. The USDA says the Consumer Price Index for all food will increase 3 to 4 percent this year. Restaurant prices will be 3 to 4 percent higher while grocery store prices will increase 3.5 to 4.5 percent. Higher commodity prices, higher energy prices and increasing global demand are all contributing to the increases.

The CPI for all food increased 0.2 percent from May to June 2011and is now 3.7 percent above the June 2010 level. The food-at-home CPI increased 0.1 percent in June 2011 and is up 4.7 percent from last June, while the food-away-from-home index was up 0.3 percent in June and is 2.3 percent above year-ago levels.

All indications are the trend will continue into next year; USDA is projecting 2012 food prices to be 2.5 to 3.5 percent higher than this year.

Bloomberg reports the all-food CPI increased 0.8 percent in 2010, the lowest food inflation rate since 1962. Food-at-home prices increased by 0.3 percent–the lowest annual increase since 1967. Food- away-from-home prices rose 1.3 percent in 2010, the lowest annual increase for restaurant prices since 1955.