Food Prices Could Rise in 2018 After Two Years of Lower Prices

Food prices in 2017 could end up lower than they were in 2016, and if so, it would be the second consecutive year of falling prices.

USDA Economist Annemarie Kuhns said prices are likely to go the other way in 2018.

“Currently we’re expecting to pay one to two percent more for grocery store items in 2018 than we did in 2017.”

Price hikes are expected in nearly every food category except butter, vegetable oils and processed fruits and vegetables.

Still, Kuhns said there’s a silver lining.

“Even if prices do increase that much in 2018, overall price levels still may be lower than they were in 2015.”

Forecasting a full year’s worth of prices has not necessarily been the easiest as last year at this time, Kuhns was forecasting a price increase of one to two percent, but it looks like prices will remain low.