Inflation overall is falling in the United States, but food prices in supermarkets increased by 1.3% from September 2023 to September 2024. This increase was smaller than the 2.4% rise for commodities such as gasoline, utilities, consumer goods, clothing, and medical services. It was also lower than the Federal Reserve’s inflation target of 2%, which is a long-term inflation goal aimed at promoting stable economic growth.
Which foods cost more than a year ago?
Of the nine basic supermarket items defined by the Bureau of Labor Statistics, the cost of a dozen eggs saw the highest increase compared to last year, rising from $2.06 to $3.82, an increase of 85.0%.
Other basic supermarket items that cost more this year include beef, chicken, tomatoes, whole milk, and bread. Beef, chicken, tomatoes, and whole milk increased more than the average of 1.3% for food. Beef prices rose the most (11.0%), followed by tomatoes (5.0%), chicken (4.1%), whole milk (1.4%), and bread (0.2%).
Which foods cost less than a year ago?
Bananas, cheese, and potatoes are cheaper than they were a year ago. Potatoes decreased by 3.6%, cheese by 2.0%, and bananas by 0.2%.
During the same period, fruits and vegetables increased by 0.9%, and dairy products increased by 0.1%.
Why are food prices so high?
Several factors affect food prices, such as:
• Supply chain challenges, including those related to COVID-19 and global relations, such as the war in Ukraine;
• Inflation;
• Higher labor and transportation costs;
• Animal diseases, such as avian flu in 2022, which impacted egg and chicken prices;
• Extreme weather events that damage crops and affect livestock.
The USDA (U.S. Department of Agriculture) expects supermarket prices to rise by 1.2% in 2024 compared to 2023.
How have food prices changed over time?
Food prices have been rising before the last year. Food prices increased by 11% from 2021 to 2022, the largest annual increase in 40 years.
Since August 2004, the largest annual increase in food prices was in August 2022, when they were 13.5% higher than the previous year, in August 2021.
During the same period, the largest decrease was in November 2009, when food prices were 2.9% lower than in November 2008.
Source: USA Facts