THE USDA PREDICTS FOOD PRICE INCREASES IN 2012

The US Department of Agriculture predicted that food prices will increase 3.5-4.5% this year, up from a September estimate of between 3% and 4% for the year.

A USDA statement said: "Although food price inflation was relatively weak for most of 2009 and 2010, cost pressures on wholesale and retail food prices due to higher food commodity and energy prices, along with strengthening global food demand, have pushed inflation projections upward for 2011."

The figures are a steep rise on last year. Food prices increased 0.8% between 2009 and 2010, the lowest food inflation rate since 1962.

All food increased 0.4% from August to September 2011, increased 0.5% from July to August, and is now 4.7% above the September 2010 level, according to the figures.