Food prices remain elevated despite slower inflation

(InvestigateTV) — Food inflation has been a major concern for consumers for years, and while the rate of price increases has slowed, grocery bills remain elevated.

At the National Food Policy Conference in Washington, D.C., Food Economist and Michigan State University Professor David Ortega said the issue has been top of mind for American consumers.

USDA data shows food prices surged in 2022, then slowed in 2023 and 2024.

“Inflation is the rate of change in prices over a period of time. So, how quickly prices are rising. And what we saw is that over the past five, six years, especially in 2022, we saw the fastest growth in that price level. Almost 11, 12 percent year over year,” Ortega said.

Ortega said slower inflation does not mean food prices are falling.

“It just means that they’re not increasing as quickly,” he said.

Ortega said the conflict in Iran and disruptions around the Strait of Hormuz could push food costs higher by driving up oil prices.

He said that kind of pressure does not hit the food system all at once. Transportation costs can be one of the earliest pressure points, even though they are only one part of the total cost of food.

For shoppers looking to manage high prices, Ortega offered several strategies.

“So, if you’re looking to keep your grocery bill in check, it’s going to pay off to shop around. There are a lot of grocery retailers that are offering promotions to be able to compete for your dollar to draw you into their stores. So definitely shop around,” Ortega said.

Ortega also recommended looking at private label or store brands, checking your pantry before you shop, planning meals ahead of time, and sticking to a list to help limit impulse buys.

Ortega added one of the biggest wildcards for food prices now is uncertainty, especially around trade policy. He said that makes it harder to predict how much relief shoppers may see ahead.