Note the high levels of inflation, some exceeding 9& pa. Dairy is at 8% but that weights cheese eggs etc. Milk is hidden there.
The USDA report states:
Although food
price inflation was relatively weak for most of 2009 and
2010, cost pressures on wholesale and retail food prices
due to higher food commodity and energy prices, along
with strengthening global food demand, have pushed inflation
projections upward for 2011.
The all-food CPI increased 0.8 percent between 2009 and
2010, the lowest food inflation rate since 1962. Food-at-home
prices increased by 0.3 percent—the lowest annual
increase since 1967—with cereal and bakery product
prices declining 0.8 percent and processed fruit and vegetable
prices dropping 1.3 percent. Food-away-from-home prices
rose 1.3 percent in 2010, the lowest annual increase for
restaurant prices since 1955.
For 2012, food price inflation is expected to
abate from 2011
levels but is projected to be slightly above
the historical average for the past two decades. The all-food
CPI is projected to increase 2.5 to 3.5 percent
over 2011
levels, with food-at-home prices increasing 3 to
4 percent
and food-away-from-home prices increasing 2 to 3
percent.
While many inflationary pressures that drove
prices up
in 2011 are not expected to intensify and may
even decrease
in 2012, retailers have been slow to pass on
cost increases
to date. Price levels in 2012 will hinge
significantly
on several macroeconomic factors such as weather
conditions, fuel prices, and the value of the U.S. dollar...
The price of food is a heavy burden on the lower income groups. I expect it to continue at a 10% rate for the foreseeable future.
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