November 30th, 2020

U.S. Department of Agriculture

USDA Raises Food Inflation Forecast

The inflation forecast for food has been raised by the U.S. Department of Agriculture. Many food prices have been relatively slow to retreat from the highs reached due to the pandemic, the USDA said, so some inflation forecasts were revised upward in the agency’s Nov. 23 food price forecast.

For 2020, the USDA said food prices at grocery stores are expected to increase between 3% and 4% compared with 2019, up from a 0.9% increase last year. The forecast for food bought at restaurants also was revised upward, the USDA said, to between 2.5% and 3.5%. Price increases for food at restaurants this year average 3%, the USDA said, slightly higher than the 20-year historical average of 2.8%.