USDA: Grocery inflation to remain low in 2020

Dairy products on grocery store shelves

The USDA released its Food Price Outlook for 2020 predicting grocery price inflation to remain low. Food-at-home prices are predicted to increase between 0.5 and 1.5 percent, well below the current 20 year average of 2.0 percent.

Retail pricing strategies, efficient food supply chains, slow wage growth, and low oil prices are contributing factors to the current trend.

The US has seen low inflation or deflation in grocery prices since 2015. The previous period of low inflation occurred in 2009 and 2010 during the Great Recession.

For more information, visit the Economic Research Service at

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