5/01/2023

From Oranges to Sugar, Global Food Inflation Persists

 May 1, 2023

Is there hope on aisle nine? Not really. The only thing in that part of the grocery store is persistent food inflation. The latest consumer price index (CPI) provided tepid relief for families who eat their dinners at home in front of the television instead of the neighborhood restaurant that plays loud and obnoxious music: Food at home rose 8.4%, and food away from home advanced 8.8%. Although this is the second consecutive month of US food prices touching single-digit territory, the pain at the checkout counter is still being felt by consumers nationwide. But the federal government anticipates that the growth rate in food prices will slow or even decline this year.

Food Inflation in America

The annual food inflation rate will be in the range of 4.9% and 8.2% this year, above the 20-year historical average of 2.8%, according to the US Department of Agriculture (USDA). Supermarket prices are expected to rise between 4.4% and 8.8% in 2023, which is also higher than the two-decade historical average of 2.5%, the USDA stated in its Food Price Outlook. Here is a breakdown of some of the key components of the monthly USDA report:

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