Huge Food Prices Increase in the US

Food prices are forecast to rise by 5 percent to 6 percent this year, making it the largest annual increase since 1990. Just last month, USDA forecast food prices would climb between 4.5 and 5.5 percent in 2008.

 Prices are expected to rise by 4 percent to 5 percent
next year, lead by red meat and poultry. The forecast, if correct,
would be the third straight year where food prices have surged at
least 4 percent.
In its latest food prices report, USDA said the
increase for 2008 was due partly to higher costs for meat, poultry
and fish, which make up about 12 percent of total food spending.
Overall, costs for these items are forecast to rise 3 percent
compared to 2.5 percent estimated last month.
Prices for fruits
and vegetables, which account for more than 8 percent of food
spending, will also rise 5.5 percent versus 5 percent predicted in
July.
Americans spend more than $1 trillion a year on groceries,
snacks, carry-out food and meals in restaurants. Farmers get 20 cents
of the food dollar and the rest goes to processing, labor,
transportation and distribution.