Grocery prices high, further increases possible

by | Feb 7, 2024 | 5 Ag Stories, News

Grocery prices, for the most part, remain high and according to the American Farm Bureau the price increases could continue.

Grocery store prices have not been kind to consumer’s pocketbooks recently and AFBF Economist Bernt Nelson says that input costs and general inflation are a big reason why.

The Washington Post recently reported that grocery prices have jumped 25 percent in the last four years, outpacing overall inflation of 19 percent, with sharp jumps for beef, sugar and juice.

While egg prices have been more volatile than some products, that volatility has been driven by avian influenza and the loss of birds says Nelson.

Nelson says that beef prices are stable currently but could hit record highs next year. Cattle inventory is tight in the United States with the lowest inventory of cattle and calves since 1951 counted in the latest cattle inventory report.

Higher processing plant and grocery store wages and post-pandemic shipping costs along with Russia’s war with Ukraine have also spiked food prices, including for grains and vegetable oils.

AFBF urges lawmakers to pass a new five-year farm bill.

Economist Nelson says a new farm bill can help to address concerns with high input costs and food security.