Grocery prices are expected to rise just 1.7% this year, well below the 20-year average increase, despite another sharp rise in beef prices, according to the Agriculture Department’s latest forecast of food costs.
The cost of eating at home rose 1.2% in 2024 and 2.3% in 2025. The average annual increase for the past 20 years is 2.6%.
The cost of eating away from home rose 4.1% in 2024, 3.8% in 2025, and is expected to increase 4.6% this year, USDA says.
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Beef prices are expected to increase another 9.4% this year, but that will be offset by expected declines in prices for pork, poultry and eggs. Beef cost 16.4% more in December than it did at the end of 2024.
The average price of eggs is expected to drop more than 22% this year.
Prices for fresh vegetables are expected to increase 2% this year, but fresh fruit prices are expected to rise just 0.2%.
Grocery prices increased 0.7% in December, driven by the continued surge in beef prices and increases in a broad range of other foods, including dairy products, cereal and baked goods, and fruits and vegetables, according to the latest Consumer Price Index. Beef prices increased 1% in December.
