April 25/Washington/ U.S. Department of Agriculture -- In 2011, the Consumer Price Index (CPI) for all food is projected to increase 3-4%. Food-at-home (grocery store) prices are forecast to rise 33.5-4.5%, while food-away-from-home (restaurant) prices are forecast to increase 3-4%. 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 for 2011 upward.
The all-food CPI increased 0.8% between 2009 and 2010, the lowest food inflation rate since 1962. Food-at-home prices increased by 0.3%--the lowest annual increase since 1967- -with cereal and bakery product prices declining 0.8%, and processed fruit and vegetable prices dropping 1.3%. Food- away-from-home prices rose 1.3% in 2010, the lowest annual increase for restaurant prices since 1955.