Inflation has steadily decreased over the past two years, despite a slight slowdown October and November. Prices of products such as gasoline, used cars and energy have fallen accordingly. However, food prices continue to outpace inflation, rising 28% since 2019.
More than 85% of consumers say they feel frustrated by rising grocery prices, and more than a third say they have resorted to buying fewer items to save money, according to RR Donnelley’s 2024 survey.
However, experts say high food prices will remain.
“Once food prices go up, they tend to stay,” said Claudia Sahm, chief economist at New Century Advisors. “Inflation could come back so you won’t see big price increases. But apart from a widespread depression, we don’t tend to see a general decline in prices.”
Experts are also skeptical about whether policy intervention can affect food prices.
“Government policymakers can’t really do anything about it,” said Jason Miller, a professor of supply chain management at Michigan State University. “This is not something unique to the United States. This has been felt around the world and right now, we just have to wait and see how things play out as we go forward.”
Uncertainties brought by the current political climate also make forecasting food price movements a challenge.
“There’s no doubt that tariffs will make things very expensive, especially food,” said Rakeen Mabud, chief economist at the Groundwork Collaborative, a progressive advocacy group. “It’s the same thing with mass deportations. We have workers in this country that really support our food system and when you start really hurting that workforce and sending them away, it hurts our whole economy.”
Look video above to discover why food is still so expensive in the United States.
