The USDA Lays Out How The Drought Will Hit Food Prices Next Year

The USDA’s CPI outlook is showing 3 to 4 per cent inflation for food prices next year as the full effects of the drought are felt.

Beef and veal prices are likely to see as ranchers cull their herds, according to USDA economist Ricky Volpe.

Here’s the full, ugly scenario:

(Note: Food prices usually rise 2.8 – 2.9 per cent a year.)

 

food price

Photo: USDA

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.