Grocery Inflation to Top 10% in 2022

U.S. grocery food inflation is expected to top 10% in 2022, reported USDA in an updated Food Price Outlook report.

The report predicts that food-at-home prices will increase between 10% and 11%, and food-away-from-home prices are predicted to increase between 6.5% and 7.5%. All food prices are now predicted to increase between 8.5% and 9.5% in 2022, the USDA said. The rates of food inflation are the highest since 1979, according to government data.

In 2021, grocery food prices increased 3.5% and restaurant food prices rose 4.5%. In 2020, grocery food prices were up 3.5% and food-away-from-home prices were 3.4% higher than the previous year.

According to USDA economists, in 2023 grocery food prices are predicted to increase between 2% and 3%, and food-away-from-home prices are predicted to increase between 3% and 4% percent.

June numbers

The inflation rate for all food rose 1% from May 2022 to June 2022, and overall food prices were 10.4% higher than in June 2021.

Editor’s Take:

These numbers continue to send shockwaves through our economy. Combined with gas prices that are near record highs, escalating interest rates and declining real wages for many people the overall impact is devastating. Economists suggest that as many as two-thirds of all Americans are living paycheck to paycheck. Increases of these magnitudes put these families under extreme pressure. Many are forced to choose between basic necessities and can no longer afford more costly items like a new home or auto. Besides multi-millionaires and billionaires, we only know of one group that is in a position to afford those new trucks on your lot – farmers and ranchers!