Increase in food costs will be less than earlier projected, USDA says

The U.S. Agriculture Department said the cost of food won’t go up as much as initially expected this year. Food prices are expected to rise 1.5 percent to 2.5 percent, down from an earlier forecast of 3 percent to 4 percent, according to Ricky Volpe, an economist with USDA’s Economic Research Service. The government had forecast food prices to soar after last year’s drought, but lower fuel prices, a strengthening U.S. dollar and a broader improvement in the country’s economy have minimized the increase. Read More