Food Price Inflation Lower Than “Traditional” Inflation

In the year 2022, the food we bought at the grocery store went up in price by 11 ½% and up another 5% last year.  But what about this year?

“Grocery prices are predicted to increase by 1.2%.”  A rate of food price inflation that Megan Sweitzer, USDA economist described as very, very low.  She added that grocery price inflation has been lower than the overall inflation rate for the past fourteen months, pushed lower by several factors affecting what we pay for food.

“We've seen energy prices decrease by 6.3 %, gas prices which is a subcategory of energy, is down over 15%.  And then prices for unprocessed agricultural commodities, so those raw products off the farm prices, are essentially flat for those products over the year.”

As for 2025, Sweitzer says it looks like food prices will rise, but by an estimated 1 ½%.

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