August 27, 2009

The US Department of Agriculture (USDA) has already lowered food-cost forecasts for milk, eggs and meat, on the basis of unexpected lower milk and egg prices on soft demand.

Milk may fall as much as six percent compared with last month's 5.5 percent.

Eggs may slip as much as 16 percent, compared with an earlier estimate of 10 percent.

Meat, poultry and fish may rise 1.5 percent to 2.5 percent, but 50-percent less than last month's prediction.

Meanwhile, the USDA left its estimate for overall food-cost inflation unchanged.

Consumers will pay 2.5 percent to 3.5 percent more for all food this year, the USDA said.

The food-inflation rate will be the slowest since 2006 and follows a 5.9 percent gain last year, according to the Bureau of Labour Statistics.

Food prices fell 0.3 percent last month after being unchanged in June, the bureau said.

The only revision to the USDA's 2010 forecast was for eggs, which may rise two percent to three percent next year, a change from last month's estimate of zero to one percent.