While some commodity costs have abated from recent highs, ConAgra Food Inc.'s (CAG) Chief Financial Officer John Gehring said price inflation will continue to factor into the company's strategy this year.

Certain commodity costs have fallen - including edible oils, energy and grains - but aggregate input costs are still higher than last year, Gehring said Tuesday at the Consumer Analyst Group of New York Conference being held in Boca Raton, Fla.

Proteins, vegetables and steel are still feeling continued cost pressures, he said.

ConAgra expects raw material costs to be around $500 million for its consumer foods division in fiscal year 2009, up from $480 million in fiscal 2008, and $160 million in fiscal 2007.

"To be clear, we are not planning for net deflation but lower rates of inflation," Gehring said.

To counter rising raw material costs, food companies have had to raise prices in recent months. Gehring said he expects net fiscal 2009 price increases to be still significant, even after merchandising and promotion adjustments.

However, all commercial foods businesses prices should continue to recover the cost of inflation, he said.

In particular, ConAgra has had to deal with aggressive price promotions from some competitors in the frozen food category in recent months, which has hurt the segment's overall profitability. In general, ConAgra hasn't lowered its frozen food prices, instead focusing on product innovation and introducing new packaging, in particular for its Healthy Choice products.

Soleil Securities analyst Edgar Roesch sees this as a good long-term strategy for the company.

"They are not trying to instigate any significant broad-based price competition," Roesch said. "It's keeping with the longer-term aim for the category which is to get away from strong promotion and move it more towards a quality branding proposition."

ConAgra, whose brands include Hunt's ketchup and Healthy Choice frozen meals, reiterated its earnings-per-share guidance of slightly above $1.50 from continuing operations for fiscal 2009.

For fiscal 2010, the company is planning for "healthy" share-earnings growth, driven by consumer foods innovation and moderating inflation. However, it expects the food service environment to be challenging.

In December, the food maker reported a decline in fiscal second-quarter net income due in part to hedging markdowns.

Shares of ConAgra recently changed hands at $16.32, up 10 cents or 0.6%.

-By Kelly Nolan; Dow Jones Newswires; kelly.nolan@dowjones.com; 201-938-4049