Like seemingly everything else, including essentials like gasoline, chicken breasts, and beer, the rest of your grocery list is about to get even more expensive. According to the USDA, inflation is only getting worse and is affecting “all food prices”.
In reality, successful farming reports that food inflation is at its highest level since 2008, with poultry, fats and oils among the biggest price increases and dairy products also on the rise.
“Food price increases are expected to be higher than the increases seen in 2020 and 2021,” the USDA said in its monthly food price outlook update for 2022, by Food & Wine. “All food prices are now expected to increase between 4.5 and 5.5%; out-of-home food prices are expected to increase between 5.5 and 6.5%; and at-home food prices are expected to increase between 3. 0 and 4.0%.”
Admittedly, these trends remain unstable due to the Russian invasion. And while inflation had an impact on your spending before, things have only gotten worse since.
“The impacts of the conflict in Ukraine and recent interest rate increases by the Federal Reserve are expected to put upward and downward pressure on food prices, respectively,” the USDA added. “The situations will be closely monitored to assess the net impacts of these simultaneous events on food prices as they unfold.”