USDA is expecting food prices to rise an additional 3 percent this year.
Andrew Harig with the Food Industry Association says the weekly cost of groceries since 2020 has gone up by about 40 percent for households.
“If you look at that, $120 to $170, that exceeds the rate of inflation over that period,” he says.
USDA’s February Price Report expects most of the cost increases to be seen on food-away-from-home purchases, up nearly 4 percent. Food-at-home costs for 2026 are projected to increase by 2.5 percent.
Harig says shifting consumer demographics have changed what’s in the overall food basket and how much they’re willing to pay for it.
“You have Gen. Z entered the marketplace, and now we have Gen. Alpha entering the marketplace, and they eat different than older generations,” Harig explains.
He says that’s meant more demand for snack foods, fresh produce, proteins, and energy drinks.
USDA’s outlook includes a nearly 7 percent price increase for sugar and sweets, a 5.5 percent rise in beef and veal prices, and more than a 5 percent increase in nonalcoholic beverage prices.
Most other food prices are expected to increase slightly, with the recovery from last year’s highly pathogenic avian influenza expected to drop egg prices by more than 27 percent.
EDITOR’S TAKE:
Food costs for a family are very dependent on the mix of items they choose in their grocery cart. Based on the information in this article, by including sweets, energy drinks and snack foods, the inflationary factor could be much greater than someone who chooses more fresh fruit, vegetables and poultry. That is not meant to diminish the inflation we experienced from 2020 forward. It appears prices at the grocery store are stabilizing to some extent depending on the type of diet a family follows. The hope is that wages will rise faster than inflation and affordability will continue to improve in 2026.
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