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USDA projects food prices to increase even more in 2022

Consumer Spending
Posted at 10:09 AM, Apr 01, 2022
and last updated 2022-04-01 10:09:19-04

People will likely pay more at grocery stores and restaurants this year.

The Department of Agriculture released its price outlook for 2022 and it shows that inflation is hitting the food industry.

"Food price increases are expected to be above the increases observed in 2020 and 2021," the agency says.

Prices from food at the grocery store are expected to increase up to 4%. Prices at restaurants could increase by 6.5%, the USDA says. If that holds true, it would exceed historical averages, according to the USDA.

The poultry and dairy industries are facing some of the highest inflation rates. Prices for poultry products could go up 7% and dairy product prices could see a 5% increase this year, the USDA said.

Fresh vegetable prices are among the products with the lowest inflation rate. The USDA says they are expected to go up by about 2.5%.

Farmers are also feeling the pinch. Ukraine and Russia are among the largest suppliers of wheat. The conflict between the two countries is expected to lead to an increase in wheat prices of up to 23%.