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Drought Effect On Food Prices Yet To Come

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The latest consumer price index shows a tiny hike in overall food prices last month.

U.S. Department of Agriculture Food Price Economist, Ricky Volpe says the drought won’t effect prices for another two to three months. Right now he says, “All food is up 2 percent. Food at home is up 1 and a half percent.”

However, the price of poultry, meat and eggs are increasing more and faster. One bright spot, he says; fresh vegetables are down this fall by about 4 and a half percent over last year. Volpe says the effect of this year’s poor corn and soybean crops and reduced pasture for livestock may not be apparent yet, but for next year, he says, look for above normal food price inflation.

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