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Shining Light on Farm & Food Policy for 20 Years.
Friday, April 19, 2024
Food prices are on track to return to normal levels this year, as consumers can expect to see softened food-at-home costs after years of high inflation pushing prices up, economists project.
In an inflationary environment, food prices tend to shoot up like rockets and come down like feathers, and food economists believe that will continue to be the case in keeping food prices from going down heading into the holidays and 2024.
Supermarket prices increased slightly for the second consecutive month and are up 3% over the past year, led by a 6% hike over the past 12 months in the cost of bakery products, the Bureau of Labor Statistics reported Wednesday.
Grocery prices dropped 0.3% in March, the first such decline since September 2020, as consumers benefitted from lower costs for a wide range of foods, including meat, dairy products, and fruits and vegetables.
Analysts say consumers are likely to see relatively high prices in grocery stores and restaurants for some time, due to strong commodity markets and high agricultural input costs that get passed through the food chain.
Supermarket prices rose 0.4% in October, their smallest increase since December 2021, as shoppers actually saw price declines in the meat and dairy cases and other areas of the store.
This year, typical holiday stress is exacerbated by inflationary concerns, with 62% of shoppers reporting their grocery costs have increased year-over-year, according to the Food Industry Association’s U.S. Grocery Shopper Trends 2022 series focusing on holiday shopping. When it comes to holiday plans, 45% of shoppers are more concerned about the price of holiday meals than the price of travel or gifts.
Supermarket prices shot up a seasonally adjusted 1.4% in May, led by soaring costs for dairy products, and have risen 11.9% over the past 12 months, according to the latest Consumer Price Index.
