Inflation 2013: Meat, Dairy, Grain, Tuition, Medical & More

http://www.radioiowa.com/2012/12/28/drought-expected-to-hit-the-price-of-dairy-products/

Some Iowa farmers had a very rough 2012 due to the drought and it’ll translate to a more expensive 2013 for consumers. A report from the U.S. Department of Agriculture predicts food prices will be rising in the months ahead. U.S.D.A. economist Ricky Volpe says the big hike in livestock feed prices means beef, pork and chicken will cost more.

“We’re going to see strong food price inflation for a lot of animal-based products,” Volpe says. “That’s expected to happen relatively early in the year, in the first quarter or the first half of 2013.” Food prices rose about two-and-a-half percent this year and the agency predicts they’ll rise three-to-four percent in the year ahead. Volpe says meat prices will go up initially, with many other items costing more by late summer.

“That’s when we can expect to see more significant impacts for all these more packaged, processed, shelf-stabled foods, things like soups, condiments and side dishes, and then even things like breakfast cereals and packaged breads,” Volpe says.