Food prices mirroring past peaks despite continuous drop (2024)

FAQs

Why aren't food prices coming down? ›

Economists say some of the main factors driving up prices are labor, transportation, shipping and packaging. “At the core of it, you can say it boils down to labor,” Volpe said. Take trucking.

Food prices have always been volatile — especially so during the pandemic. Thanks to a combination of overall inflation, supply-chain disruptions and tariffs on certain foreign imports, food prices have risen 26% since the start of 2020.

Rising prices at the grocery store and restaurants don't impact Americans evenly. Low-income consumers are hit much harder because they must spend a much larger share of their income to afford the basics.

The U.S. Department of Agriculture has released its forecast for 2024 that shows all food prices are expected to increase 2.5% while food-at-home prices are predicted to go up 1.6%. Between January and February, the Consumer Price Index for food at home rose just 0.1% and was still 1% higher than February 2023.

Notably, consumers are still facing the negative impact of the pandemic's price hikes, as the Commission's report finds that some in the grocery retail industry seem to have used rising costs as an opportunity to further raise prices to increase their profits, which remain elevated today.

The president does not control grocery prices in the U.S. Instead, “prices generally are set by sellers, and price change typically comes from market forces,” according to Steve Reed, an economist at the U.S. Bureau of Labor Statistics.

Global Food Price Crisis

Oxford Economics forecasts a decline in 2024, easing pressure on consumers. Abundant supply, especially in wheat and corn, is driving this shift. Recent months saw abundant harvests of staple crops, driving prices down. Wheat futures dropped around 10% year-to-date, and corn futures about 6%.

They're most likely gone forever. That's because prices, on average, are a one-way ticket, generally rising over time, and falling only when something has gone wrong with the economy. Officials at the Federal Reserve who set the nation's monetary policy are determined to keep it that way.

A dozen large white cage-free eggs cost about $3.02 per dozen in California, according to USDA market data released June 7. Egg prices shot up in California at the start of 2024 because a string of bird flu cases in December and January were concentrated in the state.

Many factors influencing the food supply chain can affect retail food prices, such as global trade issues, pandemics, animal and plant disease outbreaks, and war. Federal agencies don't control food prices, but may indirectly affect them.

Who is responsible for high food prices? ›

Studies have found that corporate profits account for more than 50 percent of our current inflation. Egg and meat producers, dominated by a handful of multibillion-dollar companies, have engaged in or are alleged to have engaged in price fixing, further exacerbating any external issues.

Between December 2023 and April 2024, Zimbabwe was the country with the highest level of real food inflation worldwide. Compared to the previous year, food prices had increased by 46 percent in Zimbabwe.

Bread now costs over $2 per pound — $2.03, to be exact, as of January. Last January, the same pound cost just $1.89 for a year-over-year increase of 7.7%. A standard loaf of sliced white bread weighs 20oz, which means a loaf costs about $2.54, so $20 can buy you just shy of eight loaves.

Historical data suggests a key factor in bringing down prices is a slowdown in consumer spending. Despite nearly half of Americans reporting they're in a worse financial situation than five years ago, they're still spending.

They're most likely gone forever. That's because prices, on average, are a one-way ticket, generally rising over time, and falling only when something has gone wrong with the economy. Officials at the Federal Reserve who set the nation's monetary policy are determined to keep it that way.

Here's why prices still aren't going down. Historical data suggests a key factor in bringing down prices is a slowdown in consumer spending. Despite nearly half of Americans reporting they're in a worse financial situation than five years ago, they're still spending.

(NEXSTAR) — After the last few years, it may not be surprising to hear about rising costs at the grocery store (remember when egg prices skyrocketed during the pandemic?). Now, experts are warning another grocery item could reach record prices: beef.