Food costs are predicted to keep climbing in the coming year, raising concerns for households nationwide.
Key Facts:
- The USDA predicts overall food prices will rise by 1.9 percent in 2025.
- Food-at-home costs may go up 0.8 percent, while food-away-from-home could see a 3.5 percent jump.
- In 2024, food prices are estimated to have increased by 2.3 percent, with eggs seeing the biggest spike at 7.7 percent.
- Experts cite high oil prices, poultry-related flu outbreaks, and inflation as major drivers.
- Egg prices have surged due to avian flu, affecting over 130 million birds in all 50 states.
The Rest of The Story:
According to the USDA, food prices are expected to grow more slowly than in recent years, but they will still move upward. Overall, prices for both groceries and dining out are projected to be higher, a continuation of trends seen since 2021.
Experts from the University of Miami point to factors like high energy costs, government regulations, and extreme weather as reasons for the steady price hikes.
Meanwhile, avian flu outbreaks have significantly impacted egg supplies, which has caused more volatility than any other food category.
Commentary:
Unfortunately for consumers, grocery bills are unlikely to go down soon. As noted by economists, inflationary pressures are still baked into many parts of the food supply chain, keeping costs high.
Shoppers feeling the pinch may find little respite in the year ahead. Even if certain products see minor dips, the overall trend suggests that people will continue facing higher out-of-pocket expenses every time they head to the grocery store.
The Bottom Line:
Despite hopes for moderation, food prices continue climbing. Consumers should be prepared for ongoing increases that affect essential items.
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