USDA Raises Food Price Increase Expectation

The USDA is forecasting higher than normal food price increases for 2022. Out of control inflation has driven food prices up quickly this year and consumers are feeling the pinch.

Food prices in general went up 1% in January and another 1% in February. Over the last 20 years, the average food price increase for a whole year has only been 2.4%.

“In the first two months of the year, we’re already closing in on a normal year’s inflation,” said USDA economist Matt McLaughlin. 

Last week, McLaughlin significantly raised his food price projections for 2022. In January the USDA was predicting food prices this year would only rise 2 or 3%, but now they are expecting prices to increase between 4.5 and 5.5%.

Over the last year most of the big price hikes centered around beef and pork products, but in 2022 consumers will be seeing price increases across the board. Compared this time a year ago, dairy products are up by 5%, eggs by almost 4.5%, fresh fruit 10%, poultry 12.5% and beef costing 16% more.

KPGZ News - Brian Watts contributed to this story