Government Forecasts Higher Food Costs

The U.S. Department of Agriculture has said it expects the Consumer Price Index to rise by 2 to 3 percent in 2011, ending a period of near-stagnant food price inflation over the past two years, according to www.foodnavigator-usa.com.

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Editor's Insight: The pricing struggle never ends for refreshment service operators.

This site reported on 01-19-11 that consumers have curtailed their away-from-home food spending because of cost concerns – at a time when food inflation was very low.

If prices start rising, consumers are likely to curtail away-from-home spending even more unless the economy improves significantly, which few economists expect.

Refreshment service operators will have to continue raising prices in order to cover their own cost increases. Refreshment service operators can do a better job comparing the values they offer to those of restaurants. 01-27-11 Elliot Maras

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