April 26, 2013

US beef, pork, poultry prices expected to increase 3-4% in 2013

The USDA's Consumer Price Index for food shows that pork, poultry, beef and veal prices are expected to be 3-4% higher in 2013.

According to the report, meat, poultry and fish prices as a whole are forecasted lower in 2013, down 2.5% to 3.5%, but pork, poultry, beef and veal prices are expected to move higher as supplies will be more limited than previous years.

Beef prices are 2.7% higher than the previous year, pork prices have fallen 1.6% in the same time period. Consumers spent less on groceries in March, compared to the previous month, but paid 1% more than they did in March of the previous year. The month-to-month trend is expected to continue lower with the 2013 forecast totalling 2.5-3.5% lower than 2012.

The report also expects consumers to spend between 2.5% and 3.5% more on food away from home in 2013. The expected yearly increase is higher than the percent increases observed in 2011 and 2012.

The expectations for more money spent on food away from home could be another sign of an economic recovery. Reuters reports the data released on Friday (Apr 19) is expected to show the economy grew at a 3% annual pace in the first quarter, but growth has slowed to 1.5% in the current quarter.