Largest Food Price Increase In 20 Years Upon Consumers

The biggest food price increase in nearly 20 years is upon U.S. consumers, the Agriculture Department announced August 20. This year, food prices are expected to see the largest annual increase since 1990 at 5 to 6 percent. Next year they are forecasted to rise another 4 to 5 percent, making it the third straight year prices have risen at least 4 percent.The price increase, according to USDA reports, is partly the result of higher costs for meat, poultry and fish, which are expected to rise 3 percent, and fruits and vegetables, which are predicted to rise 5.5 percent. In addition, cereals and bakery products are expected to cost 9.5 percent more, while eggs, fats and oils are forshadowed to cost nearly 14 percent more.Soybeans, corn, wheat and other crop prices are also expected to set record highs, despite their increased availability. The cost of energy used for transportation, packing and processing is also a major culprit driving prices up.US Food Prices to Post Biggest Rise Since '90:USDASource: Flexnews; Reuters