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Americans have had to dig deeper into their pocketbooks over the last several years at the grocery store, as we’ve seen record high inflation in just about all grocery store items, but as Gary Crawford with the U.S. Department of Agriculture reports, there are signs food prices could be improving.
Thomas Capps: Could there be a break in inflation at the grocery store? Hello and welcome to Tennessee Home & Farm Radio, I’m Thomas Capps. Americans have had to dig deeper into their pocketbooks over the last several years at the grocery store, as we’ve seen record high inflation in just about all grocery store items, but as Gary Crawford with the U.S. Department of Agriculture reports, there are signs food prices could be improving.
Gary Crawford: Looking at food price inflation last month, the price growth was even lower than we expected. In fact, USDA economist Matt McLaughlin says grocery store food prices dropped last month for the first time since late 2020. Leading he and his team to revise their forecasts for the year. Now last month, Matt was forecasting grocery store food prices this year, would top last year by almost 8%. But he’s taken that down now to 6.6%. So why is food price inflation cooling off?
Matt McLaughlin: We still are increasing interest rates that generally placed downward pressures on prices across the economy. And so as other prices in the economy decrease this includes the prices for things like energy and labor. These are also inputs in the food supply chain, making it cheaper to bring food to retail.
Gary Crawford: Even so he says most foods will still cost more than last year possible exceptions to that beef, pork, fresh fruits and fresh vegetables. Gary Crawford for the US Department of Agriculture.
Thomas Capps: Thanks Gary and Gary’s point not all food prices are slowing down from an inflation standpoint, as McLaughlin explains, some are still trending upward.
Matt McLaughlin: Other meats, which includes things like hot dogs and frankfurters went up by over a percentage point between February and March and we similarly revised our forecasts up about a percentage point and a half to 5.9% for 2023.
Thomas Capps: Time will tell if the forecast holds true for all of these products and hopefully consumers can get some relief. For Tennessee Home and Farm Radio, I’m Thomas Capps.
