Food Inflation Persists
From the Ag Information Network, I’m Bob Larson. Food costs continue to rise though more slowly than last year, while farming costs have come down, but like food, remain high, based on the latest data.The Labor Department says consumer inflation rose 2-point-4 percent in September, slightly more than analysts expected, with food rising 2-point-3 percent year-over-year. But USDA economist Megan Sweitzer says for the year, grocery price increases are slowing …
SWEITZER … “Last year we saw prices increase by 5-percent in 2023. This year, in 2024, we’re forecasting those grocery prices to increase by 1-percent.”
And next year could see more improvement …
SWEITZER … “So, in 2025, food at home or grocery prices are predicted to increase by point-7 percent.”
Still, grocery prices have remained high after the pandemic, supply shortages, the Ukraine war, and higher labor, packaging and transportation costs. Farmers, meantime, are watching profits disappear amid falling commodity prices and still high input costs.
American Farm Bureau Chief Economist Roger Cryan …
CRYAN … “High input costs are ‘lose, lose’ for farmers and people need to eat. High input costs mean that the farmers are disincentivized to produce, and that folks who need food will have a hard time getting it.”
And while DTN reported that multiple fertilizer prices eased in mid-September, a few rose slightly, while fuel, gas and diesel, continued to fall but remained above pre-pandemic levels.