Although agricultural commodities have been on the rise this summer, the United States Department of Agriculture expects an unusually tame food-price inflation.
The consumer-price index for food is expected to rise only 0.5% to 1.5% this year; the smallest increase since 1992. Comparatively, wheat, corn and soybean prices have seen increases over the summer months.
Although generally it takes several months for commodity prices to reach super markets, it appears that the USDA is not forecasting these commodity increases to significantly affect supper market prices. The inability of the U.S. economy to pick up steam prompted the USDA to lower its forecast by one percentage point from the range of 1.5% to 2.5% it calculated a month ago.