Fresh produce inflation tame during pandemic year

Fresh produce retail inflation for 2020 was less than 1% and the forecast for 2021 calls for continued stability in retail prices.

According to the U.S. Department of Agriculture’s Food Price Report, the retail inflation rate for fresh fruits and vegetables was 0.8% in 2020, compared with 1% in 2019, 1.1% in 2018 and the 20-year historical average of 1.9%.

The USDA said retail fresh fruit prices dipped 0.8% in 2020, while retail fresh vegetable prices rose 2.6%.

For 2021, the USDA forecasts retail fresh produce inflation in a range from 0.5% to 1.5%.

The inflation range from fresh produce was lower than overall food inflation during the pandemic year of 2020, according to the USDA. 

In 2020, food-at-home prices increased 3.5% and food-away-from-home prices increased 3.4%, the USDA said. The inflation for all food increased 3.4%. Retail meat prices rose 7.4% in 2020 and dairy prices were 4.4% higher.

The USDA said food price inflation in 2020 was much higher than in 2018 (0.4%), 2019 (0.9%), and the 20-year average (2%).

Looking ahead, the USDA said government forecasts indicate a reversion to the lower rates of inflation that preceded the pandemic. The USDA said retail food prices are expected to increase between 1% and 2% in 2021, and food-away-from-home prices are expected to increase between 2% and 3%.In 2021,