Food Prices To Skyrocket In 2013

Food Prices To Skyrocket In 2013

July 26, 2012

Drought to Drive Up Food Prices Next Year, U.S. Says

ANNIE LOWREY and RON NIXON
nytimes
WASHINGTON — Scorching heat and the worst drought in nearly a half-century are threatening to send food prices up, spooking consumers and leading to worries about global food costs.
On Wednesday, the government said it expected the record-breaking weather to drive up the price for groceries next year, including milk, beef, chicken and pork. The drought is now affecting 88 percent of the corn crop, a staple of processed foods and animal feed as well as the nation’s leading farm export.

The government’s forecast, based on a consumer price index for food, estimated that prices would rise 4 to 5 percent for beef next year with slightly lower increases for pork, eggs and dairy products.

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