Overall U.S. food inflation will remain near the historic norm in 2014, even as prices for meat and seafood are pushed higher by disease and widespread drought, the U.S. Department of Agriculture said on Friday.
Prices for shelf-stable and processed items made by companies such as General Mills and Kraft Foods Group are relatively flat.
“It appears that supermarkets are maintaining minimal price inflation on packaged food products, possibly in an effort to keep prices competitive in light of rising cost pressures for most perishable items,” the USDA said.
But drought conditions in California and other states could further drive up prices of fresh produce and beef, the USDA warned.
The agency forecast wholesale pork prices to jump by 10 percent to 11 percent in 2014, hurt by declining supplies after a virus has killed some 7 million piglets in the past year.