Inflation Cooling, But Food Prices Continue to Rise
Inflation has steadily cooled over the past two years, despite seeing a slight stall in October and November. Prices for items such as gasoline, used cars, and energy have all declined accordingly. However, food prices continue to outpace inflation, increasing by 28% since 2019.
Consumer Concerns
More than 85% of consumers report feeling frustrated with rising grocery prices, and over a third say they have resorted to buying fewer items to save money, according to a 2024 survey by RR Donnelley.
Expert Insights
“Once food price goes up, it tends to stay up,” said Claudia Sahm, a chief economist at New Century Advisors. “The inflation may come back down, so you don’t see the big price increases. But outside of widespread depression, we don’t tend to see prices falling across the board.”
Experts are also skeptical of whether policy intervention can affect food prices.
“There’s really nothing government policymakers could do about this,” 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 will play out as we move forward.”
Uncertainties and Future Outlook
The uncertainties introduced by the current political climate also make it challenging to predict where food prices are headed.
“There’s no doubt that tariffs will massively make things more expensive, especially food,” said Rakeen Mabud, chief economist at Groundwork Collaborative, a progressive advocacy group. “Same thing with mass deportations. We have workers in this country who really prop up our food system and when you start to really harm that workforce and send them away, that harms our entire economy.”
Conclusion
Food prices continue to rise, and experts predict that this trend will continue. The factors driving these price increases are complex and multifaceted, making it challenging to predict where food prices will go from here. One thing is certain, however: food prices will likely remain a source of frustration for consumers in the near future.
FAQs
Q: Why are food prices rising?
A: Food prices are rising due to a combination of factors, including supply chain disruptions, trade tensions, and increased demand.
Q: Can policy intervention affect food prices?
A: Experts are skeptical that policy intervention can significantly affect food prices. They argue that food prices are driven by global market forces and are influenced by factors beyond the control of policymakers.
Q: What can consumers do to save money on food?
A: Consumers can try buying in bulk, planning meals in advance, and looking for discounts and promotions at local grocery stores.
