By Agri-Pulse Staff

© Copyright Agri-Pulse Communications, Inc.

WASHINGTON, March 25 – USDA's Economic Research Service (ERS) sees U.S. food prices up 4% this year, with meat and dairy prices leading the way.

To watch the USDA ERS video on expected food price increases, click the video play control:

ERS economist Ephraim Leibtag explains that higher animal feed prices are expected to drive higher meat and dairy prices higher. He adds that although prices in the other food aisles should not be going up as much as meat and dairy, consumers will be paying more throughout the store. He says that's because coming out of the recession, higher demand, production and input costs all are pushing food prices higher. As well, “higher commodity costs for oil and energy for corn and wheat and therefore transportation and packaging costs are going to go up, the raw ingredients are going to go up, the processing costs are going to go up, and so those higher costs push into higher prices.”

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