1982 Food Price Update

Abstract

Retail food prices this year are expected to average 5 to 6 percent higher than last year's prices. This would be below 1981 's price increase of 7 .9 percent, and would continue a slowdown of annual food price increases that began in 1980. Also, 1982 could be the fourth consecutive year that food prices rise less than nonfood prices. As in 1981, higher food marketing costs will be the major contributor to the food price increase. However, because of the recession and the lower general inflation rate, marketing costs may rise less than they have in recent years. The farm-to-retail price spread, expected to increase 6 to 7 percent above the 1981 spread, may cause about two-thirds of the retail food price increase. The farm value of foods is expected to be up 2 to 4 percent, contributing about one sixth of the food price rise. The balance of the food price increase will reflect an expected 4- to 6-percent increase in retail prices for imported foods and fish.