Did You Hear? USDA Says Food Prices May Increase Soon

This means the numbers aren’t bad yet, they are going to be worse! So, what’s the deal? Why the sudden surge in food prices? Here’s more.

“All Food Prices Are Now Predicted To Increase,”- USDA

As per the U.S. Department of Agriculture, it’s quite likely that people will be paying more than what they are, be it eating inside or dining outside. This prediction comes after the USDA’s Food Prices Outlook for the 2022 March report. They said that the prices could be higher than what people have experienced in decades.

Speaking of numbers, as per the report, the grocery prices saw an uptick with rates rising 9% for the year. If we see the USDA’s Economic Research Service (March Report), the number shows an increase of 4.5%-5% in food prices. Similarly, the report also showed a surge in 5.5%-6.5 for dine-outs.

Why Did the Food Prices Soar Up?

One of the main reasons behind such food price uptick is said to be related to inflation. Due to inflation, the food and grocery prices are likely to increase, probably by 3-4% as we proceed further to the year.

Likewise, the upsurge of eggs and poultry is said to be related to avian influenza. If a similar trend is followed, the cost might soon increase by 6% to 7% for poultry and 2.5%-3.5% for eggs.

What’s more surprising is that there has been no decrease in food prices for any category since 2021. If we check the USDA forecast as per the cost, the categories like meats, poultry, dairy, and oil had an upward surge. On the other hand, only vegetables were seen going down in the forecast.

The categories that were really high on the pocket-pinch were meats like veal and beef. If things go like this, it’s not far when the beef prices will surge up to 4% and 7%. At Least that’s what’s predicted!

There has also been an uptick in dairy product costs, with the rates being 4-5% more. The surge is mainly related to the demand for dairy products that have recently been more in the country.

Besides inflation, demands, and diseases, another reason that’s contributing to higher food prices is the Russia-Ukraine dispute. As per the report “The impacts of the conflict in Ukraine and the recent increases in interest rates by the Federal Reserve are expected to put upward and downward pressures on food prices, respectively.”

“The situations will be closely monitored to assess the net impacts of these concurrent events on food prices as they unfold,”. Besides that, the war has also caused higher energy prices around the world.