Higher consumer demand and lower supplies are driving up pork and egg prices, but after increasing for six months in a row, the U.S. food inflation rate for 2022 is unchanged this month, said the USDA on Thursday. The monthly Food Price Outlook said food prices would rise 9 percent this year from 2021 prices. That would be the highest food inflation rate since 11 percent in 1979.
USDA economists said pork prices would rise 8.5 percent this year, nearly four times the normal rate, and eggs would cost 25 percent more, eight times their usual annual change.
“Lower pork inventories, combined with strong domestic and international demand, have sustained high pork prices,” said the Outlook. Prices for “other meats,” which include hot dogs and luncheon meats, were forecast to surge 13.5 percent this year.
Outbreaks of bird flu have reduced the size of the U.S. egg-laying flock. “This outbreak has contributed to elevated egg prices and increasing poultry prices as over 40 million birds, 189 commercial flocks, and 39 states have been affected,” said the USDA.
Food inflation was forecast to slow to a more usual 3 percent in 2023.