The U.S. Department of Agriculture (USDA) said today that food inflation will persist in 2012, with prices expected to increase 2.5 percent to 3.5 percent, MarketWatch reported.

The cost of food at supermarkets and restaurants will remain “slightly” above the long-term historical average of the past two decades, USDA food-price forecasters said.

“Price levels in 2012 will hinge significantly on weather conditions in the American Midwest during the remainder of July and into August and September 2011,” USDA food economist Ephraim Leibtag said in the report. “Because current USDA forecasts are based on a normal weather scenario, sustained heat or drought conditions resulting in reduced supplies and intensified inflationary pressure would result in revised USDA forecasts.”

The USDA left unchanged its 2011 inflation forecast.

For 2012, the the department predicts that supermarket prices will climb 3 percent to 4 percent, compared with 2011’s estimated rise of 3.5 percent to 4.5 percent.

As of June 30, food prices at grocery stores were 4.7 percent above their June 2010 levels, according to the USDA.

Restaurant prices in 2012 are pegged to increase 2 percent to 3 percent after a projected 3-4 percent gain for 2011, MarketWatch said.

Beef prices are up 8.2 percent from June 2010, and pork is 8.5 percent higher. Coffee prices have jumped 17.6 percent, eggs, 11 percent and milk, 10 percent, MarketWatch said.

Most brand-name food manufacturers began to phase in price increases during the first quarter. More price hikes are expected over the course of this year, MarketWatch said.