Food Might Get Cheaper: Report
Foods from meat to millet might become more affordable this year, as farmers expect 2012 to bring plentiful crop yields, Bloomberg reports.
According to the news service, Standard & Poor's has determined that eight top foodstuffs dropped significantly in price in 2011 -- including cocoa, sugar, coffee, and soybeans -- suggesting that the new year will bring the same decreases.
What this means: Food inflation -- basically a fancy way of saying food price upswings -- will probably slow, from a peak increase of 6 percent in 2011 to a more stable rate of 3 to 4 percent.
In the U.S., food costs will probably go up 2.5 to 3.5 percent in 2012, Bloomberg reports -- compared with 2011, when they ballooned between 3.25 and 3.75 percent.
Wheat prices have dipped, Bloomberg notes, bringing down the price of animal feed.
Because of this, economists also predict that livestock production will boom in 2012 and that the new glut of pork and beef on the market will make meat significantly cheaper.