U.S. grocery food inflation is expected to top 10% in 2022, the USDA reported in an updated Food Price Outlook report.
In 2022, the USDA said in a July 25 report that food-at-home prices are predicted to increase between 10% and 11%, and food-away-from-home prices are predicted to increase between 6.5% and 7.5%. All food prices are now predicted to increase between 8.5% and 9.5% in 2022, the USDA said. The rates of food inflation are the highest since 1979, according to government data.
In 2021, grocery food prices increased 3.5% and restaurant food prices rose 4.5%. In 2020, grocery food prices were up 3.5% and food-away-from-home prices were 3.4% higher than the previous year.
The agency’s economists said food inflation will cool considerably in 2023.
In 2023, grocery food prices are predicted to increase between 2% and 3%, and food-away-from-home prices are predicted to increase between 3% and 4% percent.
June numbers
The inflation rate for all food rose 1% from May 2022 to June 2022, and overall food prices were 10.4% higher than in June 2021.
The grocery food price inflation rate in June was 12.2% higher than a year ago, with restaurant food up 7.7% above year-ago levels. The report said food prices may face mixed trends in the months ahead.
“The impacts of the conflict in Ukraine are expected to put upward pressure on food prices, and the recent increases in interest rates by the Federal Reserve are expected to put downward pressure on food prices,” the report said.
