Pricier beef ‘here to stay’ as food costs seen higher: USDA

By Ros Krasny WASHINGTON (Reuters) – U.S. food prices are expected to rise more rapidly this year after a very tame 2013, led by gains in beef, poultry and egg prices, the U.S. Department of Agriculture said on Tuesday. The food price inflation outlook assumes normal weather, the USDA said, adding that the California drought poses a risk of bigger increases in many food categories, and that high supermarket prices for beef are “here to stay.” Various measures, including overall food, food-at-home and food-away-from-home prices, are expected to rise by 2.5 to 3.5 percent in 2014. The consumer price index for all food prices rose by 1.4 percent in 2013. The ongoing drought in California could have “large and lasting effects on fruit, vegetable, dairy and egg prices” although that impact has not been seen so far, USDA said.