Food prices are expected to continue to decelerate in 2024 and are projected to rise 2.5% compared with 2023, according to a new USDA report.
In the March 25 Food Price report, the USDA estimates grocery food inflation at 1.6% for 2024, while restaurant prices are predicted to rise by 4.1%.
According to the latest consumer price report numbers released by the Department of Commerce, overall consumer inflation in February was up 3.2% over year-ago levels. Food prices in February were 2.2% higher than year-ago levels, with grocery prices up 1% and restaurant prices up 4.5% compared with year-ago levels.
In 2022, the USDA said food prices increased by 9.9%, followed by a 2023 food inflation rate of 5.8%.
For 2024, the USDA said prices for most food categories are predicted to change at a rate below their 20-year historical average.
The USDA said farm-level prices for fruit in February were 7.2% below February 2023. Meanwhile, prices for farm-level vegetables were 1.4% higher than a year ago, despite large price increases in January and February.
The USDA said prices for farm-level fruits are predicted to experience no change in 2024, while prices for farm-level vegetables are predicted to decrease 0.2%.
