Economist: Food Inflation Affected Minimally by 2012 Drought

USDA economist Ricky Volpe estimates food prices could end up between 1.5%-2.5% higher by the end of 2013. But what if there had been no drought last year?
Volpe says in that case, food price inflation would be a mere .5% less than it’s currently estimated, between 1%-2%.

He acknowledges the temptation to think food prices would fall if there had been no drought in 2012, but Volpe points out that food price deflation is virtually unheard of due to other inherent costs in the price of food, such as transportation, processing, and marketing.

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