Faster and Higher Than Expected: Price of food may increase by 6%
Do not expect relief from high food prices anytime soon. USDA has raised its forecast for food inflation to much higher numbers.
Back in January, it was expected to run between 1.5 and 2.5 percent. Now, we are looking at price increases between 5 and 6 percent. A USDA economist says that it is due to double-digit fuel price increases, the war in Ukraine, which is contributing to higher wheat and flour, and HPAI, which is affecting the poultry and egg prices. When asked when we will see relief, the economist said down the road.
Later today, Treasury Secretary Janet Yellen will convene another high-level panel to discuss global food security.
It will include the heads of the International Monetary Fund, World Bank, and G7 and 20 leaders. Leaders say that the war in Ukraine threatens global hunger. Last week, leaders discussed avoiding export restrictions that increase prices, supporting vulnerable nations with social safety nets, and helping small-holder farms.