Paying More at the Store: Food prices won’t be going down entirely
It is no surprise that consumers dished out a lot more at the grocery store last year.
On average, food prices go up about 2 percent annually, but last year those prices were up between 11 and 12 percent. USDA economists warn those prices will not be going back down completely, and instead, they say consumers can expect price hikes at a slower pace.
Seth Meyer says that slow down can be attributed to higher prices at the farm level, but says other factors are at play as well.
“There are a lot of things that go on beyond the farm gate that add to that labor, trucking, and all of those things. So, general wage pressure in the food processing and retailing sector, which can add to the price of food.”
He says you can expect to pay an average of 3-4 percent more for food this year. The Consumer Price Index is out next week and will show us food inflation numbers for December.