USDA Predicts Food Prices Will Continue to Rise Faster Than in Previous Years

Not only are gas prices soaring to levels not seen since the 2008 recession, retail food prices continue to rise at an unusually rapid rate, much faster than in previous years and that has analysts concerned.

So what does that mean for you, the average consumer, when you go to the grocery store?

According to the USDA, the Consumer Price Index , a measure of economy-wide inflation, all food has increased 3.7 since August 2020.

The level of food price inflation varies depending on whether the food was purchased for consumption away from home or at home:

According to the USDA, In 2021, food-at-home (grocery store) prices are expected to increase between 2.5 and 3.5 percent, and food-away-from-home (restaurants/fast-food) prices are expected to increase between 3.5 and 4.5 percent.

In 2022, food-at-home prices are expected to increase between 1.5 and 2.5 percent, and food-away-from-home prices are expected to increase between 3.0 and 4.0 percent.

Beef and veal prices are predicted to increase between 5.0 and 6.0 percent in 2021, and pork prices are predicted to increase between 6.0 and 7.0 percent. Prices for the aggregate category of “meats” are predicted to increase between 4.5 and 5.5 percent.

Fish and seafood prices are predicted to increase between 3.5 and 4.5 percent in 2021. Prices for the aggregate category of “meats, poultry, and fish” are predicted to increase between 4.0 and 5.0 percent.

U.S. egg prices are predicted to increase 2.5 to 3.5 percent in 2021.

Source: https://www.ers.usda.gov/data-products/food-price-outlook/summary-findings/