In 2021, prices rose by 3.9 percent, in 2022 by 9.9 percent, and in 2023 by 5.8 percent.
Overall food prices have been increasing steadily over the years, with the growth predicted to continue in 2025, according to the U.S. Department of Agriculture’s (USDA) Food Price Outlook tracker.
“In 2025, prices for all food are predicted to increase 1.9 percent,” the agency said in a Jan. 8 report.
Food-at-home and away-from-home prices are projected to rise by 0.8 and 3.5 percent respectively. While overall food prices are projected to increase this year, the gain is expected to be “at a slower pace than the historical average rate of growth.” In 2021, prices rose by 3.9 percent, in 2022 by 9.9 percent, and in 2023 by 5.8 percent.
The Food Price Outlook tracks and forecasts annual food price changes by taking into account projected and observed prices over the previous two years.
In 2024, food prices are estimated to have increased by 2.3 percent. The food category that registered the largest price change last year is eggs, which rose by an estimated 7.7 percent. This was followed by beef and veal with a 5.5 percent increase, fats and oils at 2.5 percent, and cereals and bakery items with a marginal gain of 0.5 percent.
Fish and seafood are calculated to have seen the biggest price dip at 1.9 percent, followed by dairy products which fell by 0.3 percent.
David Andolfatto and David Kelly, professors from the University of Miami, cited high oil prices, supply-and-demand challenges from the COVID-19 pandemic, and crop diseases as some of the key factors affecting food markets globally, according to an Aug. 30, 2024, post from the university.
As for domestic factors, Kelly, an economics professor, blames higher energy costs, regulations on trucking like banning cages for chickens, and extreme weather as contributing factors. However, “the vast majority of the high food prices are attributed to high inflation,” he said.
“Inflation certainly affects food as it does every other good. Since 2019, general prices have increased 4.2 percent per year, and food prices have risen 4.8 percent.”
