U.S. retail food prices could rise as much as 4% in 2013 amid U.S. drought conditions, industry officials say
Nevin Barich
LOS ANGELES
,
August 6, 2012
(Industry Intelligence Inc.)
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Industry officials say that U.S. retail food prices could rise as much as 4% in 2013 amid U.S. drought conditions, The Canadian Press reported Aug. 6.
The increases will be similar to that of 2011, when demand from emerging economies pushed food prices higher, said RBC economist Paul Ferley, who predicted that food costs would rise between 2.5% and 3.5% in 2012, and between 3% and 4% in 2013.
Extreme drought conditions in several U.S. Midwest states are causing corn and soybean crops to wither. Because corn is used to feed livestock in the U.S., the rising cost of beef and pork will be most noticeable on grocery store shelves, said Patricia Mohr, a commodity markets specialist at Scotiabank. Poultry may also be affected, she added.
The primary source of this article is The Canadian Press, Toronto, Canada, on Aug. 6, 2012.
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