PRODUCE PRICES SET TO RISE

The cost of fresh produce is poised to jump in the coming months due to the 3-year drought in California, which shows no signs of abating.  An Arizona State University study found a head of lettuce could increase in price as much as 62 cents to $2.44; avocado prices could rise 35 cents to $1.60 each; and tomatoes could cost 45 cents more at $2.84 per pound. The price increases may already be happening. Grocery prices rose by 0.5% for the second-straight month in March, according to the Labor Department’s most recent consumer-price index. It was the largest two-month gain in the food-at-home category since 2011. Fruit and vegetable prices rose 0.9% last month, after a 1.1% gain in February. Meat and dairy prices are also increasing.

 

Source: Wall Street Journal, 4/17/14, Food Prices