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gov website belongs to an official government organization in the United States. gov website. Share sensitive information only on official, secure websites. This page summarizes the January forecasts, which incorporate the December Consumer Price Index and Producer Price Index numbers.

See the Overview page for Consumer Price Index and Producer Price Index datasets. The all-items Consumer Price Index CPI , a measure of economy-wide inflation, decreased 0.

The CPI for all food increased 0. The level of food price inflation varies depending on whether the food was purchased for consumption at home or away from home:. In , food prices increased by 5. Food-at-home prices increased by 5. While prices increased in for all food categories tracked by the U.

Department of Agriculture USDA , Economic Research Service ERS except for pork, prices grew more slowly in than in for all categories. Fats and oils had the largest average price increase 9. Pork prices declined 1. Food prices are expected to continue to decelerate in In , all food prices are predicted to increase 1.

Food-at-home prices are predicted to decrease 0. The USDA Food Price Outlook forecasting methods are based entirely on statistical models that are fitted to recent trends in the data. These methods provide prediction intervals that narrow over the forecast period as more data become available and the degree of uncertainty declines.

The Food Price Outlook tracks and forecasts the annual percentage change in prices by averaging observed and forecast prices for all months in the current year compared to all months in the previous year. Following a year of high price growth like , the annual percentage change in can be higher than recent year-over-year change i.

For example, although food-at-home prices were only 1. While price growth moderated substantially in , which the recent year-over-year values reflect, the annual percentage change captures the annual change from all months in compared to For a summary of forecasting methods used in the Food Price Outlook, see ERS Refines Forecasting Methods in the Food Price Outlook.

Between the s and early s, food-at-home prices and food-away-from-home prices increased at similar rates. However, between and , their growth rates diverged; while food-at-home prices deflated in and , monthly food-away-from-home prices rose consistently.

Differences between the costs of serving prepared food at restaurants and retailing food in supermarkets and grocery stores partly explain this difference.

In , food-at-home prices increased 3. This convergence was largely driven by a rapid increase in food-at-home prices following the onset of the Coronavirus COVID pandemic, particularly for meats and poultry, while food-away-from-home price inflation remained similar to its inflation rate.

In , all food prices increased 3. No food categories tracked by USDA, ERS decreased in price in compared with their prices in In , food prices increased by 9. Food-at-home prices increased by All food price categories increased by more than 5 percent, and all food categories grew faster than their historical average rate.

Following an outbreak of Highly Pathogenic Avian Influenza HPAI , egg prices had the largest price increase Beef and veal prices increased the least 5. Year-over-year price increases continued to slow for all food, food at home, and food away from home. Food-at-home prices were 1. Five food-at-home categories had lower prices in December than in December eggs, fresh vegetables, fish and seafood, dairy products, and other meats.

In , prices for most food categories are predicted to change at a rate below their year historical average. Prices are predicted to increase for 10 food-at-home categories and decrease for 5 food-at-home categories in , though the measures of uncertainty do not rule out either an increase or decrease in prices in for most categories.

Beef and veal prices were unchanged between November and December but remained 8. Beef and veal prices are predicted to increase 5. Prices for beef and veal are predicted to experience the highest price growth of any category in as prices remain elevated following consistent growth in Pork prices fell 1.

Pork prices are predicted to decrease 1. Retail egg prices increased 8. An outbreak of HPAI that began in contributed to elevated egg prices by reducing the U. egg-layer flock. After egg prices peaked in January , they declined or stabilized through much of However, prices have increased again in recent months after HPAI was confirmed in egg layers in November for the first time since December The outbreak has affected about 4.

Egg prices are predicted to decrease 4.

17 Foods You Should Buy When They're on Sale ; 1. Cheese: · Pizza Margherita | The Original Nachos | Broccoli and Cheddar Soup. 2. Butter: ; 5 Disruptions and changes to the food supply chain can affect the prices consumers see at the grocery store. Some of these are long-standing Why are food prices rising? Food prices are rising because of several factors, including inflation, labor costs, the supply chain and the war in

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Reduced-price food supplies - Rising food prices particularly impact low-income consumers, who spend about 30% of their income on food. Many factors influencing the food 17 Foods You Should Buy When They're on Sale ; 1. Cheese: · Pizza Margherita | The Original Nachos | Broccoli and Cheddar Soup. 2. Butter: ; 5 Disruptions and changes to the food supply chain can affect the prices consumers see at the grocery store. Some of these are long-standing Why are food prices rising? Food prices are rising because of several factors, including inflation, labor costs, the supply chain and the war in

Better yet for shoppers, grocery prices fell for a second month, although not every product dropped and some got even pricier, most notably baby formula. Grocery prices rose 7. Parents of young children may not see their grocery bills dropping much: Baby food and formula jumped 4.

Baby formula manufacturers say they're raising prices because a new FDA plan to more closely monitor baby formula production, intended to prevent a repeat of the shortage of , is making it more expensive to produce.

Prices for eggs not shown on the chart fell 1. Even after the recent decline, egg prices were Bureau of Labor Statistics. Consumer Price Index for All Urban Consumers CPI-U : U.

city average, by detailed expenditure category. Food and Drug Administration. Infant Formula Market. Seeking Alpha. Use limited data to select advertising. Create profiles for personalised advertising. Use profiles to select personalised advertising.

Create profiles to personalise content. For example, FDA responded to disruptions in the food supply chain by offering regulatory relief and other flexibilities that allowed producers to divert food made for consumption in restaurants to grocery stores.

This action helped to avert shortages that could have further increased retail food prices during the COVID pandemic, according to FDA officials. In addition, to help lower food costs amid supply chain disruptions, USDA provided funding to help meat and poultry processors expand their operations and for producers to expand fertilizer manufacturing.

However, agencies do not have a direct role in controlling price increases, according to agency officials. Increases in food prices can pose a hardship for many in the U. Multiple factors along the food supply chain can affect the food prices consumers see at grocery and other food stores.

Crops across the country suffered, Laura Reiley of the Post wrote, and American corn was set to produce its lowest yield in a decade. This scarcity, political uncertainty, and international trade restrictions meant that supply was down and costs went up. Then eggs became the poster child for inflated grocery prices in late , when a mass outbreak of the highly contagious bird flu forced poultry farmers to cull their chicken population.

But like many other produce and livestock products, Rothschild says, egg prices also rose because of higher input costs—that is, the price of things that go into raising a hen, like feed and labor. Now, egg prices have fallen down to more reasonable levels.

Producers and sellers of food claim that increased costs from inflation and factors like higher wages are driving up prices , but in reality wages are not keeping pace with inflation.

Though higher wages might be responsible for a slightly higher price for consumers, the increase in retail cost for items is often rising higher than employee wages.

In fact, many food producers have been accused of raising costs simply because they can. us, alleged to The New York Times. So where do we stand now? Overall, grocery prices won't be increasing in the way we saw last year, though there may still be slight increases, as there were in May.

Because those price increases are on top of the unusually high price hikes of , you may still experience some sticker shock—sorry—supermarket scaries. Some grocery staples could still see outlandish price hikes.

Beef, for example, already a pricier grocery item, will likely increase in the near future due to a shrinking supply of cattle across the country, according to a report in The Wall Street Journal. Disease and hurricanes have hurt the orange crop in Florida , so oranges and orange juice will likely continue to get even more expensive than the Extreme climate events like drought can always pop up and make prices go haywire.